Abstract

This paper examines the extent to which different human resource

practices affect organizational performance. The effect of various business

strategies on organization performance is investigated. Also, integration of

human resource management and business strategy is tackled. Todays

business environment is characterized by vicious competition. Human

resources are a vital source for a sustainable competitive advantage. In

order to exploit such an important resource, it is vital to make sure that

human resource management is in line with organization strategy. This

paper discuses a model which illustrates relationships among human

resource management, business strategy and organization performance.

Keywords: human resource practices, business strategies, organization

performance, strategic human resource management.

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1 .1 Introduction

The ultimate goal of all organizations, regardless of the industry, is to

boost performance. Organizations all around the globe are striving to

accomplish such a goal and are in continuous search for methods to

enhance performance. Moreover, in todays extremely competitive

environment it is not only about improving performance but also doing so

in a unique way in order to hold a distinctive position among competitors.

Among the most successful recipes for inimitable performance is

investing, developing, and relying on human resources of the organization

(Lee et al., 2010; Sahoo et al., 2011; Altarawneh, 2016).

The human resource function has developed enormously over the

years from merely a record keeping department to a strategic goals

achievement enabler (Lee et al., 2010; Altarawneh, 2016). Therefore,

there is a growing interest in both vertical and horizontal integration of

human resource management (herein referred to as HRM). Vertical

integration means making sure human resource management is in line

with organization strategy, while horizontal integration implies assuring

full harmony among human resource management policies and practices

(Sahoo et al., 2011). However, the impact of human resource

management practices on performance is greatly debatable. Some effects

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of these practices on performance were proven by some authors, while

others did not find any linkages of these two variables (Altarawneh, 2016).

Organizations are greatly keen on managing their human resource in

order to improve their performance, and achieve organizational

objectives. A critical function for human resource managers in a strategic

planning role is to build the organizations human resources as a source of

sustained competitive advantage (Mitchell et al., 2013).

1.2 Problem Statement

The factors affecting organizational performance have been the subject

of an unlimited number of research papers. Many have investigated the

effect of quality management (LiPuma et al., 2013), innovation (Camisn

and Villar-Lpez, 2014), information technology (Liu et al., 2013), supply

chain integration (Leuschner et al., 2013) and organizational culture (Yesil

and Kaya, 2013) and other various factors. Recently, human resource

managements effect on organization performance is the spotlight of

many papers around the world (Lamba and Choudhary, 2013; lucky et al.,

2013; Suifan, 2015). Human resource management is no longer a function

of a department in the organization but rather a building block of

organization strategy. Each employee is considered an asset and his/her

work will contribute to the achievement of the strategic goals of the

organizations. Many organizations as well as researches fully understand

the importance of human resources as a source of competitive advantage.

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Furthermore, there is an increased focus on the integration of human

resource management practices, policies, and procedures with the

organization's overall strategy.

Consequently, this paper aims to investigate the integration of human

resource management practices and business strategy. Moreover, the

effect of human resource practices, business strategy, and their

integration on organizational performance is tackled. Therefore, the

current study will answer the following questions:

What is the effect of human resource practices (human resource planning, recruitment

and selection, training and development, compensation, performance appraisal, and

job security) on organization performance?

How do business strategies (cost leadership, differentiation and focus strategies) affect

organization performance?
What is the relationship between human resource practices and business strategy?
How does integration between human resource practices and business strategies affect

organizational performance?

1.3 Significance of the Study

This paper has both theoretical and practical importance. First, the

theoretical importance is achieved by providing a concise preview of

literature concerning the relationship among human resource practices,

business strategy, and organizational performance. Second, the practical

importance is providing decision makers with vital insights about human

resource practices that mostly affect performance. Moreover, this paper

highlights the importance of involving human resource management in

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 the formulation and implementation of business strategies in order to

improve organizational performance.

1.4 Research Objectives

The study aims at achieving the following objectives:

To investigate if human resource practices (human resource

planning, recruitment and selection, training and development,

compensation, performance appraisal, and job security) affect

organizational performance.
To investigate if business strategies (cost leadership, differentiation

and focus) affect organizational performance.

To investigate the relationship between human resource practices

and business strategies.

To investigate the relationship between human resource practices

and business strategies effect on organizational performance.

2. Literature Review:

In this section, the three main topics of this research, human resource

management practices, business strategy, and organizational

performance are discussed. Human resource practices discuss six

practices including human resource planning, recruitment and selection,

training and development, compensation, performance appraisal, and job

security. Business strategies discuss the levels of strategies as well as,

the different types of strategies including competitive strategies (cost

leadership, differentiation, and focus) and cooperative strategies.

Organizational performance is categorized into financial performance and

non-financial performance.

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2.1 Human Resource Practices

Human resource practices are an important asset in organizations and a

way for them to achieve their competitive advantage. Human resource

management is the human resource practices and policies that the

organization needs to achieve its strategic goals and objectives. Various

human resource practices were discussed in previous literature (Lee et al.,

2010; Obiedat, 2014; Altarawneh, 2016).

However, this research spots the light on the six most important aspects

of human resource practices. According to Lee et al. (2010), the six

practices that affect the employees performances which are human

resource planning, recruitment and selection, training and development,

compensation, performance appraisal, and job security.

2.1.1 Human Resource Planning

Human resource planning is one of the most important human resource

practices that should be fit with organization goals (Uysal, 2015). Human

resource planning is a process of identifying and forecasting future and

current human resources that organizations need. It includes recruitment

of employees with appropriate skills and abilities that fit job description,

training and development requirements, methods for developing and

improving employees skills, and how to motivate them to do their jobs

well (Samolejova et al., 2015).

Abdulkadir defined human resource planning as a process through

which managers define the skills, knowledge, and competences needed,

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as well as, defining the career goals and plans to achieve these goals

(Aamir et al., 2012). Human resource planning aligns human resource

skills and abilities and their preferences with organization needs and

requirements to achieve its overall goals and enhance performance

(Uysal, 2015).

Human resource planning process begins with forecasting requirements

of employees and employees availability that include estimation the

number of employees and specific skills, abilities and competences that

the organization requires in the future. Then, the organization analyzes

supply and demand to find if there is a surplus or deficit in employees and

take actions such as downsizing and early retirement towards surplus and

recruitment and selection toward deficit. Human resource planning is

concluded with developing employees and implementing strategies to

solve surpluses and deficits. (Akhigbe, 2013).

Aims of human resource planning: (Prashanthi, 2013)

Attracting and employing the right number of employees with the

right set of skills and competences that the organization requires.

Solving problems of deficits and surplus in regards to employees.
Developing employees and keeping them flexible to adapt to

organizational changes.
Maintaining employees.

Human resource planning affects business strategy by employing

people with specific requirements and qualifications that fit with

organization goals. Human resource planning includes three activities:

identifying the number of required employees, motivating them, and

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integrating organization goals with planning (Prashanthi, 2013). An

organization conducts long- term human resource planning to ensure it

has enough and required employees at the right time with the specific

skills, knowledge, and abilities needed to fit the employees' jobs and

organization goals.

2.1.2 Recruitment and Selection

One of the most important aspects of an organization is human

resources; the organization grows through its employees' skills,

competences and abilities. The growth of human resource and

organizations depends on how organizations recruit and select right

employees with right skills and competences (Ekwoaba at el., 2015).

Recruitment and selection processes are vital in human resource

management. Recruitment is the process of finding and attracting people

with specific skills and competencies to apply for jobs that organization

needs to fill. Selection is the process through which choosing the most

appropriate candidates from a qualified pool of candidates by using many

instruments (Ofori & Aryeetey, 2011). Recruitment includes identifying

vacancies, job description and specification, and how to attract

candidates, while selection includes gathering important information

about candidate and choosing the most appropriate candidate (Gamage,

2014). Recruitment has many benefits; attracting large number of

candidates to fill vacancies, attracting qualified candidates at minimum

cost, identifying the most appropriate candidates for jobs and increasing

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effectiveness for types of candidates (Kumari, 2012). These processes

help managers to attract and select the appropriate and most qualified

employees that the organization needs to achieve its goals and to

enhance performance (Rehman, 2012).

Recruitment and selection determine human resource skills, abilities

and knowledge that are required for job specifications and description and

attracting the most qualified and appropriate candidates (Fong et al.,

2011). There are many recruitment methods like advertisement,

newspapers, internet, social media, bulletin boards, referrals, college

recruiting, and recruiting agencies. The organizations use a combination

of these methods to recruit depends on job positions, type of required

employees, and budget. (Sinha and Thaly, 2013).

2.1.3 Training and Development

Training and development are described as the firm central importance

of a continuous effort designed to enhance employee skills and

organizational performance. Employees who are well trained can

exchange their updated knowledge and skills while using their ability to

understand and improve the service in the organization. The benefits of

training and development include higher morale, employee satisfaction,

lower turnover, higher retention, and improved hiring. All these benefits

can increase commitment and satisfy employees, so as a result this

improves the overall competence and performance of an employee.

Training and development can be affected by different factors such as top

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managements support, technology advances, world complexity and other

human resources function. (Williams, 2012).

Employees are an important asset to organizations, so the organizations should train and

develop their skills, abilities, and competences. Training is planned work and effort in

activities to achieve high performance. Few people these days will disagree about the

importance of training as a major influence on the success of an organization. Employees are

a crucial and expensive resource. In order to sustain effective performance, it is important to

increase the contribution of employees as possible to the aims and goals of the organizations

(Huselid, 2010)

Fong defined development as a process of improving the skills, knowledge and

competences of managerial personnel to adapt to organizational changes and to achieve

performance effectively and efficiently (Fong et al., 2011). Training reduces the gap between

job requirement and employees skills and competences. There are different types of training,

such as promotional training, remedial training, orientation training, and refresher training

(Lamba and Choudhary, 2013).

According to Obeidat, training and development include improving and enhancing

employees' skills, abilities and competences through many training and developing methods

and tools. This is done to enhance their performance in order to achieve the overall goals and

attain the competitive advantage (Obeidat et al., 2014).

2.1.4 Compensation

Compensation refers to the total amount of both financial and non-financial rewards

provided to employees as a motivation for the work performed. Altarawmneh and Al-kilani

(2010) asserted that "employees are motivated when there are financial rewards directly tied

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to their performance". Compensation is represented by wages, pays, and benefits based on

employees' performance. According to Gomez-Mejia there are three types compensation:

Basic compensation (fixed salary), incentives (bonuses), and indirect compensation (health

insurance and vacation) (Gomez-Mejia et al., 2004). Taylor asserted that compensation is the

best way to increase production as it relates to employees effort and performance with

rewards and compensation that will be incentives for them to produce more effectively and

efficiently (Shaukat et al., 2015).

Any organization should fairly pay salaries and rewards to employees to attain qualified

employees. Compensation can be classified into basic and supplementary compensation.

Basic compensation includes pay like salary and supplementary compensation includes

rewards based on employees' performance and their output (Lamba and Choudhary, 2013).

Rewards consist of tangible benefits such as pay and promotions, and

intangible benefits such as opportunities for participation in decision-

making, as well as the social rewards represented by good relationships

with colleagues or supervisors (Newman and Sheikh, 2015). Employees in

organization have different jobs and do different tasks, so each one has different benefits and

rewards based on his work and educational level. When fairly compensating employees based

on their jobs, they will be more satisfied and feel happier, reducing their turnover,

encouraging them to do their jobs well, and improve their performance (Aslam et al., 2015).

Therefore, it is important for an employer to make a decision on how

employees are being paid because this can attract capable employees

and motivate them, or reduce motivation of existing employees. Through

compensation, employees performance can be easily evaluated.

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Therefore, level of performance will be known and solutions can be sought

for further improvement.

2.1.5 Performance Appraisal

Human resource evaluation is one of the oldest functions in

management, its used to evaluate employees performance in order to

develop and train them (Singh and Shikha, 2013). Employee appraising is

"a formal system of review and evaluation of individual task performance".

Mondy stated that effective appraisal system evaluates employees'

performance fairly and uses the evaluation results and information in

different human resource practices such as recruitment and selection,

compensation and training and development (Mondy, 2010). Employee

appraisals can serve to achieve both administrative and developmental

aims. Administrative aims can include, assigning tasks, distributing

rewards, and making promotions, while developmental aims can be,

identifying employee strengths and weaknesses, and assessing training

needs (Armstrong et al., 2014).

Swiercz et al., (2012) stated that organizations usually use performance appraisal scores to

determine the distribution of pay, promotions, and other rewards and benefits, but few

organizations make an effort to evaluate how and employees attitude and performance is

affected by the their idea of how fair performance appraisal is. Employees have a

positive attitude when they know their job outcomes and financial reward

they will get based on their outcomes (Shaukat et al., 2015). Although it is

a costly process, organizations use it to determine training and

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development needs and incentivize employees according their jobs to

enhance their performance (Obeidat et al., 2014).

Getnet proposed that organization adopt employees' appraisal to

evaluate their performance and incentivize them and to measure their

beliefs and preferences toward achieving organization goals. Fair

performance appraisal is related to employees' commitment to the

organization; when organization measure each employee performance

fairly, it will determine the appropriate training and development needs or

requirements and incentives them fairly this will effect on their

performance and commitment to achieve overall goals (Getnet et al.,

2014).

2.1.6 Job Security

Job security becomes one of important factors in employees'

preferences as a result of economic pressure on organizations. Job

security is "assurance in an employee's job continuity due to the general

economic conditions in the country" (Lucky et al., 2013). Job security can

also be defined in terms of the subjective fears of job loss, separating it

into cognitive job insecurity (the estimated probability of losing ones job)

and affective job insecurity (fears that come from the thought of losing

ones job) (Carr et al., 2014). Millan et al., (2013) compared job security in

regards to employees and the self-employed. The self-employed have

lower job security when compared to employees, due to the fact that the

self-employed tend to have lower social security or employment

protection. High chance of the business failing also adds to lower job

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security. The risk of business failure is much higher than the risk of

becoming unemployed.

Employees' security influences the employees' decisions about to join

organization and keep their jobs as they desire or not join, many factors

such as employment contract, work experience, and location affects

employees need to job security (Gramm and Schnell, 2013).

Towers considered that organizations should focus on job security,

retain their employees, ensure that employees' continuity with their jobs

to create friendly environment that enhances organization performance

(Lucky et al., 2013). Pfeiffer stated that organizations must have a secure

job to attract employees, feel them confident and expand their effort for

their jobs (Pfeiffer, cited in Lee at al., 2010).

2.2 Business Strategy

The most important factor that success or failure of the organization is

depending on is the overall strategy (Tripes et al., 2014). Strategy is about

integrating and managing functions and businesses in the organization in

a way that help this organization to achieve its goals and objectives.

(Slocum et al, 2014). It is a set of actions and a way of managing

resources to define how the organization will enter the market, which

costumer it should focus on and how to reach this customer, what

methods and technologies it should adopt in production and marketing,

and how it will grow over time (Slocum et al, 2014; Ladib and Lakhal,

2015).

2.2.1 Levels of strategy:

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 Strategic planning involves environmental scanning, strategy

formulation, strategy implementation, and strategy evaluation and control

(Tripes et al., 2014). Strategy formulation is the process of identifying

types of strategy for the three levels of any organization. These levels are:

Corporate, business, and functional levels. Corporate strategy or overall

strategy is shaping the flow of resources of the organization toward

achieving overall goals and objectives. In other words it is the choice of

direction of management and business portfolio in the organization.

Corporate strategy has three types: Growth strategy; which is related to

the direction of the organization internally and/or externally by expanding

activities and achieving a growth in sales of the organization. Stability

strategy; very popular in small organization and it is about staying where

we are now and not doing a significant changes in the organization. And

Retracement strategy; it is usually used when organization feels that it

has some weaknesses in competitive position and it needs to enhance

performance rather than growing in market by reducing some activities in

one or all its production lines (Wheelen et al., 2014). The second level of

the strategies in the organization is business strategy which should be

connected with overall strategy and its main aim is to increase selling

products and services to the customers (Tripes et al., 2014). While the

third level which is functional strategy it is about enhancing

responsiveness to customer, efficiency, quality, and innovation (Jones and

George, 2012). These three levels should be connected together as one

unit in a way that help to improve performance of organization and

achieving overall goals and objectives of organization (Tripes et al., 2014).

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 Business strategy has two major types: the first type is competitive

strategy, which mainly has three basic schemes of classifications; the first

scheme is Miles and Snows strategy classification, which involve

defenders, prospectors, analyzers, and reactor (Muduli, 2012). The second

scheme was put by Schuler and Jackson (Lee et al., 2010) who suggested

three types of competitive strategy: cost-reduction, innovation, and

quality enhancement. The third scheme was put by Porter who defined

three types of customers: customers who mainly care about the price,

customers who want unique products, and customers who are looking for

both: unique product and low prices (Tripes et al., 2014). According to this

classification Porter classified competitive strategy into generic types:

overall cost leadership, Hybrid (Stuck in the middle), differentiation and

focused strategies. While the second type of business strategy is

cooperative strategy which was derived mainly form Skinner who was one

of the first researchers who suggested cooperating between companies in

order to perform an important task and to achieve a common goal (Wang

and Shyu, 2008). This study adopted Porters types of strategy with

mainly focusing on differentiation and cost leadership strategies.

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 Figure 1: Porters generic strategies (Porter, 1985, p.39)

2.2.2 Competitive Strategy:

Organizations that adopt cost-leadership strategy try to achieve success

by reducing the costs needed to produce products or services. These

organizations usually focus on specific product or service (Brenes et al.,

2014). Efficiency is the most important goal in these organizations; they

apply high levels of operations monitoring and production costs

controlling. In other words, they use high accurate equipment, control

employees behavior, ask for detailed and frequent reports, and focus on

quantitative performance of employees (Brenes et al., 2014; Ubenda-

Garcia et al., 2014). While the organizations that implement

Differentiation strategy tend to focus on presenting the customer a unique

product and/or service. Unlike the strategy of cost-leadership, the

differentiation strategy do not focus mainly on the lowest price of the

service, and in most cases the higher price may indicates that the service

is better in this organization than others (Brenes et al., 2014).

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Differentiation strategy adopters focus on other factors such as: corporate

image, service on time, quality of service, innovation capability,

qualitative performance of employees, high-trained staff, and good skills

in marketing and producing (Gehani, 2013; Brenes et al., 2014; Tripes et

al., 2014).

2.2.2.1 Cost Leadership Strategy:

Cost leadership strategy is the ability of firm to produce products and

services with lowest cost in the market. Firms which adopt this strategy

tend to produce standardized products and services rather than

customized products that depend on customers' needs. They compete on

low cost to gain a large market share over competitors through capturing

economies of scale in production, procurement and distribution (Bordes,

2009). According to Barney and Hesterley, the sources of cost leadership

Strategy are economies of scale and size differences, diseconomies of

scale and size differences, low cost of inputs and advances in technology

(Minarik, 2007). To achieve cost leadership strategy, firms should operate

efficiently, tight control, produce large number of products, low service

and advertising costs.

Any organization wants to implement cost leadership strategy should take

into consideration its structure, resources and skills, controls,

compensation strategies, and overall strategy. Porter divided cost

leadership implementation requirements into "Common required skills

and resource" that means the firm which implements cost leadership

requires extreme supervision on labor ,reducing employee incentives,

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reducing distribution cost, skills, efficient operations and access to

capital, and "Common organizational requirements, which means tight

control, structured responsibilities, and efficient requirement (Minarik,

2007).

Cost leadership has many advantages , the firm that adopts cost

leadership strategy has a high market share, high profit , risk avoidance

through customers who buy the products of dominant firms with low cost

in the market, keeping competitors out of the industry through cutting

prices which building a high entry barrier. But the firms who adopt this

strategy should have a high level of assets commitments, produce

products and service with lowest cost, reduce marketing and distribution

costs and adopt new technology in order to attain the strategy. Another

disadvantage is the imitability because of the short life cycle products and

services, it is easily imitated (Bordes, 2009). Adopting low cost leadership

strategy burden on the firm, the firm is vulnerable to many risks such as

cost inflation, technological changes, and risk of imitation by other

competitors who are compete on low cost (Tanwar, 2013).

2.2.2.2 Differentiation Strategy

Everyone in this world has a desire to be different. This can be applied

on customer who wants to be different in what he/she has, and on seller

who wants to be the first person to be thought about when anyone needs

a specific product or service. Therefore, differentiation strategy has

become the most commonly used strategy in the world (Spencer et al,

2009). Differentiation strategy is the tendency of the organization to

create a unique product that satisfy the individual customers needs and is

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considered as highly added value product (Disrisu et al., 2013). Unlike the

strategy of cost-leadership, the differentiation strategy do not focus

mainly on the lowest price of the service, and in most cases the higher

price may indicates that the service is better in this organization than

others (Brenes et al., 2014).

Instead of focusing on the price, organizations that apply differentiation

strategy depend firstly on the customer loyalty and satisfaction that is

achieved by their products uniqueness and quality, innovation, and unique

resources (Jones and George, 2012). Therefore, Differentiation strategy

adopters focus on other factors such as corporate image, service on time,

quality of service, innovation capability, ability to make changes in design,

qualitative performance of employees, high-trained staff, and good skills

in marketing and producing (Disrisu et al., 2013; Gehani, 2013; Brenes et

al., 2014; Tripes et al., 2014). Therefore, implementing differentiation

strategy needs strong skills in operation and marketing, strong

coordination between departments and functional areas, higher investing

in research and development (Kaya, 2015; Rahimi, 2016).

Even though the differentiation strategy is the most commonly used

strategy among the three types of the competitive strategies, but its

implementation may not be that easy. It has some risks such as:

1- Differentiation strategy is the portion of the reverse the

organizations got from investing in research and development

(Banker et al. 2014; Rahimi, 2016). Hence, the more the

organization invests in research and development the more it gets

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 benefits from differentiation. In other words, the cost of

implementing this strategy is high.

2- Because of high price of products or services provided by

differentiation strategy adapters comparing to the ones provided by

cost-leadership adopters, the customer may give up some additional

aspects for huge saving in cost (Disrisu et al., 2013).

3- Producing unique products need much more time than the time

needed for typical products. Hence, costumer may depend on the

second type of products if he found that he could not wait for

differentiating product. (Disrisu et al., 2013).

4- Firms cannot be easily and quickly implementing differentiation

strategy and having a good reputation in the market. However, the

response of competitors for producing competitive product is much

more difficult if this product has a high level of innovation and

uniqueness (Banker et al. 2014).

2.2.2.3 Focus Strategy:

Focus strategy produces products and services with low cost or high

quality for small market niche rather than broader market like cost

leadership and differentiation strategies, it differs from these strategy

based on the scope of the market. These niches could be group of buyers,

market segment or geographic location. It achieves high profitability and

values. Focus strategy could be cost based focus or differentiation based

focus, in cost focus strategy the firm produces products and delivers

services with lowest cost in the target market. Whereas in differentiation

focus strategy, the firm produces products with high quality and focus on

brands in small market niches (Boreds, 2009). It is called niche strategy, it

21
has two options based on market scope; cost focus strategy that focus on

low cost products and services in market segment and differentiation that

focus on unusual needs and best services to target market (Tanwar,

2013).

Focus strategy has many advantages; the ability of firms to carve a

market niche rather than broad markets, firms avoid dominant market

share companies, improve and add value to their activities . But it faces

risks when market niche turned to broad market and when market niche

preferences become broader and it could be imitated by large market

segments (Boreds, 2009). However, it is vulnerable to risk when broader

firms increase differentiated cost, customers move to broader products.

2.2.3 Cooperative Strategy

The second type of business strategy is the cooperative strategy. Which

refer to the strategy that organization adopts to collaborate with one or

more organization to gain competitive advantages (Wheelen et al., 2014).

Porter claimed that there are five forces that define profits and

competition of industry which are the power of customer, the power of

supplier, the threat of new entrants, the threat of substitutes, and the

rivalry among existing firms. Therefore, organization may need to

cooperate with other buyers, suppliers, competitors to achieve success in

market. (Hu and Huang, 2015). The basic two types of cooperative

strategy are collusion and strategic alliance. Collusion is the cooperation

between the organization and the industry in order to reduce output and

raise the price. While strategic alliance is a cooperation that is happened

22
between two or more independent companies or units to perform

activities that achieve common interests and goals (Wheelen et al., 2014).

Strategic alliance has several forms such as:

Cooperating between companies that are producing the similar

products and share their resources.

Cooperating between independent companies, each one of these

companies produce product that are needed by the other

companies.
Agreement with a company that gives grants right to other

companies to sell or produce its products in other countries.

Agreement between independent companies to depend on each

other in supplying or distributing products (Wheelen et al., 2014).

Moreover, cooperation may be informal. Which is considered the most

common type of cooperation and the initial step of formal cooperation. In

addition, the cooperation may be foreign or domestic. The latter is easier

to apply because of the similarities in culture, social aspects, and laws.

(Hu and Huang, 2015, Haahti et al., 2005).

In cooperative strategy, firms share their resources in order to gain

competitive advantages. These resources may be: finance, competence,

human, knowledge, technologicaletc. these advantages may be a join

manufacturing facility, highly efficient process, decreasing costs for

product, share innovation, decreasing risks, research and development

project, marketing (Tsai and Hsu, 2014; Findik and Beyhan, 2015; Hu and

Huang, 2015; Othman et al., 2015).

Cooperation either be with partner and then it is called pure

cooperation or with competitor and then it is called coopetition (Bengtsson

23
 et al., 2000). Coopetition is a paradox that involves firms have a

relationship that is changed overtime from competition to cooperation and

back again (Bengtsson et al., 2015; Czernek and Czakon, 2016). This main

aim of the coopetition paradox is to ensure achieving win-win relationship

among cooperated firms by: sharing resources, cost saving, promoting

innovation, exploring common threats and opportunities, and getting

benefits from both competition and cooperation (Gnyawali and Park, 2011;

Bengtsson and Kock, 2000; Czernek and Czakon, 2016; Le Roy and

Czakon, 2016). However, this relationship may be converted to win- lose

or even lose-lose because of the sensitivity of such strategy. Coopetition

need high balancing between cooperation and competition and managing

tension between firms (Bengtsson et al., 2015).

2.3 Organizational Performance

Organizations must always look for new ways to improve performance

due to todays increasing competitive environment (Noruzy et al., 2013).

In order for a firm to survive, organizational performance must be a main

focus. In previous researches, contrasting areas have put much interest

into organizational performance as an outcome, such as human resources

and marketing to operations management, international business,

strategy and information systems (Signh et al., 2016). The main goal of

research for all of these areas is aimed at helping businesses improve

their profitability and long-term survival through improving, shaping, and

sustaining organizational performance (Bititci et al., 2012). A basic

24
 definition of organizational performance is that organization performance

shows how well an organization is achieving its strategic goals and

objectives (Choudhary, 2013.) Based on literature review, organizational

performance can be down into two sets of measurements both financial

performance and non-financial performance that can assess the level of

accomplishments for organizational goals and objectives (Signh et

al.,2016). Similarly Rhodes et al. (2008) separated organizational

performance into tangible and intangible indicators. The most commonly

used tangible indicators are cost reduction, profits, sales volume, asset

turnover, equity turnover, and inventory turnover. Intangible performance

indicators such satisfaction of customer and product development are

used but not as often as the tangible. As for Signh et al. (2016) they

defined organizational performance in terms of financial ratios (e.g. return

on assets and return on equity), market outcomes (market share, stock

price and growth), HR-related outcomes (job satisfaction, commitment and

others) or organizational outcomes (productivity, service quality, new

product development and others). While this paper will be discussing

financial and non-financial organizational performance, the main area of

study will be on measuring non-financial performance.

2.3.1 Financial Performance:

Increased profitability is not the only way to measure a firms financial

performance; it can also be measured by financial stability and growth.

Financial stability is represented by a substantial flow of cash (Simon et

al., 2015). Hill (2007) listed return on investment; return on equity; total

25
return on assets; increased share price; gross profit margin and net profit

margin are widely used measurements of profitability. While organizations

can easily obtain financial measurements from secondary sources, the

ever changing environment will cause these measurements to become

outdated which leads managers becoming misled (Vlachos, 2008;

Mohamed et al. (2009), cited in Alkalha et al., 2012)

2.3.2 Non-Financial Performance:

Based on literature review findings, some of the most popular non-

financial measurements are satisfaction, commitment, and turnover

(Alkalha et al., 2012). Simon et al. (2015) has identified non-financial

measurements as employee satisfaction, customer and client satisfaction

and retention, teamwork and product and service quality. Employee

satisfaction may be defined as the degree to which employees have

positive attitudes towards their jobs (Simon et al., 2015). Satisfied

employees are more likely to stay committed to the organization. Also, it

has been found that if an employee is satisfied this leads to customer

satisfactions which in turn leads to profitability for the organization

(McShane et al., 2010). Organizational commitment has been studied for a

number of years, and a shared idea was the linkage between the

individual and the organization (Kadiresan et al., 2015).

Organizational commitment is said to be associated with human relation

issues such as employee performance, job satisfaction, turnover,

absenteeism, and achieving organizational goals and objectives thereby it

is very important to organizations performance (Memari et al., 2013).

26
 Saleh et al. (2012) connected organizational commitment to the reduction

of turnover, since commitment binds an employee to an organization

through a psychological state. Turnover is the intent to which an

employee permanently withdraws from an organization (Oluwafemi,

2013).

Abdali (2011) defined turnover as the ratio of employees leaving and

organization with the average of the employees remaining in the same

time period. The intentions of an employee can either be voluntarily or

involuntary.

2.4 Human Resource Practices and Organizational Performance

Studies asserted that human resource practices and policies affect

organization effectiveness and performance through the influence of

human resource practices on employee's behaviors, attitudes,

satisfaction, and through the ability to elicit employees competences that

are important to attain the competitive advantage ( Shaukat et al., 2015).

High work performance includes using high performance human

resource practices that contain comprehensive recruitment and selection

process, effective training and development, fair rewards and

compensation and highly employees' retention. Recruitment and selection

processes are a vital in human resource management, that help managers

to attract and select the most appropriate and qualified employees that

organization needs to achieve its goals and to enhance performance

(Rehman, 2012). Lamba studied stated that training and development

lead to employees commitment and improvement; employees behaviors

27
based on organization's effort to improve employees skills, competences

and development this enhance employees self-esteem, their skills, and

commitment to the organization and their performance (Lamba and

Choudhary, 2013)

Suifan mentioned the effect of human resource practices on

organization commitment and found that training employees and pay

rewards have a positive effect on organization commitment that

represented by achieving organization goals and employees engagement

to complete their jobs in organization (Suifan, 2015).

Organization adopts employees' appraisal to evaluate employees'

performance and motivate them and to measure their beliefs and

preferences toward achieving its goals. Fair performance appraisal is

related to employees' commitment to organization; when organization

measures each employee performance fairly, it will determine the

appropriate training and development needs and incentivize them fairly

this will effect on their performance and commitment to achieve overall

goals (Getnet et al., 2014). Yasemin revealed that employees performance

appraisal has a positive effect on employees behavioral commitment and

performance. Appraisal effect employee performance and commitment

specially fair employee apprising (Singh and Shikha, 2013). Compensation

and reward systems are very important in organization; they increase

employees' productivity, effectiveness and enhance organization

performance. (Aslam et al., 2015). Compensation has an impact on

employees' performance; when the organization has appropriate

28
 compensation packages the employees turn over will be less and improve

their performance. Intrinsic and extrinsic Rewards play an important role

in motivating and satisfying employees and increase their commitment to

the organization (Aamir et al., 2012).

Job security has an impact on organization performance; organizations

with low employee's security will effect on their future job continuity and

on their performance. Employees within secure organizations do their

tasks effectively and enhance their performance and overall

organizational performance (lucky et al., 2013).

2.5 Human Resource Practices and Business Strategy

Human resource management is the collection of activities, procedures,

policies and practices that are used by organization in order to manage

their employees. A subset of human resource management is strategic

human resource management (Kramar, 2013). Strategic human resource

management is a concept that focuses on synchronizing human resources

management practices and policies with strategic goals of an institution

(Nigam et al. 2011; Sahoo et al., 2011). Huselid & Becker (2010) viewed

strategic human resource management as linking everyday human

resource practices with the long-term goals of an organization. Armstrong

further explained that strategic human resource practices and plans are to

be formulated based on organization objectives and business strategies in

a way that enables an organization to better interact with its external

environment (Waiganjo et al., 2012). Moreover, Caina (2014) described

strategic human resource management as a two dimensional process that

aims to integrate human resource policies and practices both vertically

29
and horizontally. The vertical integration is the one sought with business

strategy, while horizontal integration is the one to be pursued among

various human resource policies (Cania, 2014).

Furthermore, the priority of strategic human resource management is to

guarantee that an organization possesses the right quality of human

resources. Therefore, such employees are needed to achieve business

goals by via enriching the competitive advantage of a certain organization

(Munteanu, 2015).

Strategic human resource management has two aspects. The first one

is the integration with business strategy, while the second aspect is

concerned with enhancement of organization effectiveness (Singh et al.,

2012; Darwish and Singh, 2013). In other words, strategic human resource

management will promote organizations in both achieving competitive

advantage and improving performance. High correspondence between

human resource management and business strategy will result in superior

performance (Kumari et al., 2011; Hamid and Soua, 2014). Moreover, the

integration between human resource management and business strategy

of and organization shall benefit the performance via assuring that various

resources are allocated properly and no waste or misplacement of

valuable resources occurs (Gautam, 2015).

Such integration is accomplished via carrying out human resource

department functions such as staffing, training and development that are

governed by definite policies and procedures (Gautam, 2015). Such

policies and procedures are formulated based on organizations strategic

30
goals and objectives. The end result would be having the right human

resources in terms of experience, knowledge, abilities and behaviors

(Othman, 2009). In strategic human resource management, the

employees are viewed as the enabler of organizational goal achievement

as they are the facilitators of the strategy (Verma, 2012).

Based on contingency theory, in order for an organization to boost its

performance, human resource practices must be in line with the

organization business strategy (Waiganjo et al., 2012). Therefore, certain

human resource practices are more suitable with cost leadership strategy

than with differentiation or focus strategies (Verma, 2012). Such practices

are referred to by many authors as human resource bundles (Waiganjo et

al., 2012).

2.6 Business Strategy and Organizational Performance

Globalization and tough competition in global market pushed firms to

focus on applying competitive strategies in order to enhance their

performance and to attract more customers.

31
 Many practitioners and researchers have studied the relationship

between business strategy and organizational performances. Whereas

business strategy is about enhancing the competitive position of the

organization by focusing on each service or product, it was considered

that it is the most important level of organizational levels of strategy and

it has a double impact on organizational performance than the impact of

corporate and functional levels of strategy (Wheelen et al., 2014). Porter

examinations found that the profitability of the organization decreases

when it fails to develop a strategy Tanwar (2013). Following porters study,

many researchers found that there is a relationship between

organizational performance and business strategy (Banker et al., 2014).

Dvorak, Tripes, and perozik found that pursuing inappropriate strategy

lead to lower performance (Dvorak et al., 2013). Dess and Davis found

that adopting competitive strategies helps organizations to get higher

growth in sales and higher return on assets (ROA) (Banker et al., 2014).

Mostly, firms apply one type of competitive strategies. However, some

firms try to apply more than one strategy at the same time. Approaches

like this can help firms to get success in short term, but on long term,

sustainable performance is hardly to achieve (Disrisu et al., 2013). Banker

claimed that both differentiation strategy and cost leadership has a

positive impact on performance and differentiation strategy has more

impact on sustainable performance if organization success to face its

(differentiation strategy) higher risks and unstable performance. However,

many other researchers and practitioners found that there are either no

relationships or insignificant impact of business strategy on organizational

32
performance (Nandakumar et al., 2011; Abu Aliqah, 2012; Banker et al.,

2014).

Moreover, researchers study the relationship between competitive

strategy and performance by comparing more than one type of strategies,

by combining types, or by studying each type separately. Acquaah and

Yasai-Ardekani (Disrisu et al., 2013) investigated the profitability of

implementing cost leadership, differentiation and a combination of them.

They found that the performance of organization pursuing only

differentiation strategy do not significantly differ from the performance of

firms pursuing a combination of strategy. Banker et al., (2014) concluded

that differentiation strategy helps organization to get higher sustainable

performance than what it can get by cost-leadership strategy. Hansen,

Nypakk, and Panwar (2015) examined the relationship between

competitive strategy and organizational performance in the forest sector

industry. They found that there is no evidence that hybrid strategys

impact and cost-leaderships one on performance is different, while the

highest performance is related to applying differentiation strategy.

Rahimi (2016) indicated that both differentiation strategy and cost-

leadership strategy have a positive impact on the relationship between

financial leverage and performance, this impact becomes more positive in

the case of differentiation strategy. Kaya (2015) found that differentiation

strategy positively affect the performance of small and medium sized

enterprises. Abu Aliqah (2012) investigated the impact of differentiation

strategy on the performance of Jordanian companies. He concluded that

33
differentiation has not significant impact on the performance of these

companies. On another hand, Dess, Lumpkin and Covin found that

organization could get high performance if it pursues a cost-leadership

strategy with using entrepreneurial decision-making approach (Kaya,

2015).

Furthermore, many researchers investigated the relationship between

cooperative strategy and performance. Almarri and Gardiner (2014)

pointed that deploying resources between collaborated organizations

helps to achieve superior performance. Huang and Yu (2011) found that

both competitive and non-competitive cooperation have a positive impact

on organizational performance. also Cassiman and Veugelers (2006) found

that both internal and external research and development activities have

a positive effect on performance. Simth, Carrol, and Ashford (Cited in: Hu

and Huang, 2015) claimed that the benefits of cooperative strategy are

based on higher performance and satisfaction. Hu and Huang (2015)

studied the position of using cooperative strategy in smart phone

production in Asia Pacific region. They found that this type of relationship

helps smart phones companies to provide costumer with products have

better hardware and more advanced software, they cooperate in

operating system, content provider, mobile operator, retail, content-

added, customization, promotion, and innovation. On another hand the

low management capabilities in cooperative firms because of reasons like

low wages or being controlled by cooperative employees made some

researchers to pointed that the performance in cooperative firms may be

34
in some cases the same or lower than it is in other firms (Basterretxe and

Martinez, 2012).

Regarding the performance of firms that collaborate with competitors,

many researches were conducted to investigate this strategy on

performance. Quintana-Garca and Benavides Velasco (2004) found that

coopetition helps European biotechnology firms to increase technology

diversity and develop new porducts. Belderbos et al. (2004) found that

coopetition helps to increase productivity of employyes. Addition to that

many studies have pointed to the positive impact of coopetition on

performance several types of firms and this performance is higher than it

is in pure cooperative or pure competitive firms (Morris et al., 2007;

Neyens et al., 2010; Le Roy and Sanou, 2014). However, many other

researchers and practitioners found negative, insignificant, or mixed

impact of coopetition on performance. (Oum et al., 2004; Luo et al., 2007;

Nieto and Santamaria, 2007; Retala et al., 2008, Kim and Parkhe, 2009)

the main reason of negative impact may be explained by the tension in

coopetition firms. This tension may happen between managers from

different firms, manager who are responsible of managing collaborative

activities and the ones managing competitive activities, employees

involved in common activities (Le Roy and Czakon, 2016).

In conclusion, researchers were not able to decide which type of

strategies has the most significant impact on performance and this impact

is related to the circumstances around the organization (Tripes et al.,

2014). In addition, there is still a gap in proving the relationship between

35
business strategy and organizational performance (Banker et al, 2014; Le

Roy and Czakon, 2016).

2.7 Human resource Practices, Business Strategy and

Organizational Performance

Human resource becomes a part of strategic management; whenever

the organization set its business strategy it should formulate and align its

human resource strategy with business strategies to improve the

performance and it should take into consideration the external factors that

affect its competitive advantage like globalization, environmental changes

and increasing number of competitors and how to react to these factors

through human resource training, commitment, formulation and

implementation(Othman, 2009).

The corresponded relation between human resource management and

firm performance have been reviewed through several researches, Prior

researches have conducted human resource management-performance

relationships upon three features: the performance of the firm will be

better through individual high performance, a firm will perform better

through internal appropriate fit among human resource management

practices and a firm will perform better through external appropriate fit

between a firms business strategy and human resource management

practices (Chen, 2003).

In order to have a successful organization in strategic human resource

a number of prerequisites are needed these requirements are quite logical

36
such as having a well established strategic planning manner. The focus

here is engaging human resource managers in the strategic planning

process which in turn will enable those managers of developing human

resource unit plans that serves the overall strategic plan (Altarawneh,

2016).

According to Singh there are two perspectives to understand the

integration between strategic human resource management and the

performance of the organization. At First the system perspective studies

strategic human resource policies and practices such as selecting,

training, developing and appraising and how they contribute in achieving

and attaining the competitive advantage that the organization pursuits to

achieve. The second strategic perspective suggests that human resource

practices, skills, knowledge and competencies should be aligned with

competitive strategy within the organization (Singh et al., 2012).

Delaney viewed the complementarities among human resource

management practices through analyzing & testing the effects of all

possible combination of human resource practices on the performance of

the firm. It is supposed that a successful firm will and link each practice to

others in a systematic ways. A second approach is resource-based theory

of the firm in which the competitiveness is based on firms internal

strength and weaknesses instead of external opportunities or

threats (Chen, 2003).

Strategic human resource management is the link between human

resource management and strategic management in the organization.

37
Jackson pointed out, Strategic means that human resource activities must

be systematically designed and related to an analysis of business and its

context. Researchers argued that if human resource management wants

to add value for the organization, it has at first to become a part with the

business in order to achieve businesss goals. Ferris and Frink conducted

that human resource management has transformed into strategic human

resource in which it was contributed to firm competitiveness by linking

human resource policies and firm performance (Acar et al., 2015).

Waiganjo asserted that Strategic human resource management affects

the performance of the firm by strategic fit between human resource

strategy and business strategies and level of influence depends on the

type of business strategy (cost leadership, innovation or quality

enhancement strategies) that the organization pursuits. Human resource

supports business strategy by linking between human resource policies

and practices that include selecting, training, developing, use of teams

and decentralization and appraising that elicit employee's competencies

and skills to achieve the competitive strategy (Waiganjo et al., 2012).

According to Darwish and Singh Alignment human resource functions and

practices with business and corporate strategy, and involvement human

resource in formulation and implementation strategies and decisions will

improve the performance of the firm and reduce turnover rate (Darwish

and Singh, 2013). Tasi mentioned that Human resource practices and

policies improve individuals and the organizational performance through

renewing and developing competencies and behaviors that adopt

downsizing and dynamic strategy of the organization (Tasi and Yen, 2008).

38
 Wang found a strategic fit between human resource strategy and business

strategy that improves the performance of organization through human

resource effectiveness that includes performance evaluation, training and

development, content of job description and compensation and through

setting operational strategy based on the organization structure, culture

and available resources (Wang and Shyu, 2008). The positive relationship

between both the human resource policies and the financial organization

outcomes is the central contribution into organization performance

(Frombrun, cited in Kramar, 2013).

3.1 Theoretical Framework

This research is based on the proposed model (Fig. 2) that was adopted

from Lee et al. (2010). The independent variables in this model are human

resource practices and business strategy while the dependent variable is

organization performance. The model considers the impact of human

resource management practices on organizational performance. The

model also considers the impact of business strategy on organization

performance. The effect of integrating human resource management

practices and business strategy is also considered and is referred to as

strategic human resource management.

39
 Figure 2. Research Framework

3.2 Hypotheses

According to theoretical framework and previous studies, numbers of null

hypotheses are proposed:

H1: There is no significant effect of human resources practices on

organizational performance

H1a: There is no significant effect of human resource planning on

organization performance.

40
 H1b: There is no significant effect of recruitment and selection on

organization performance.
H1c: There is no significant effect of training and development on

organization performance.
H1d: There is no significant effect of compensation on organization

performance.
H1e: There is no significant effect of performance appraisal on

organization performance.
H1f: There is no significant effect of job security on organization

performance.

H2: There is no significant effect of business strategies on organizational

performance

H2a: There is no significant effect of cost leadership strategy on

organization performance.
H2b: There is no significant effect of differentiation strategy on

organization performance.
H2c: There is no significant effect of focus strategy on organization

performance
H2d: There is no significant effect of cooperative strategies on

organization performance.

H3: There is no significant relationship between human resource practices

and business strategy.

H4: There is no significant effect of integration between human resource

practices and business strategies on organizational performance.

4. Research Methods

4.1 Population and Sample:

41
 The population of this research consisted of all manufacturing

companies in Jordan. The target sample of this study consists of

manufacturing companies in Amman. The possible respondents include

general manager, vice general manager, HR manager and operations

manager.

4.2 Data collection methods:

A questionnaire was organized to collect data for this research. The

theoretical constructs were adapted from the previous literature. The

constructs of strategic human resource management, business strategy

and performance included a total of 44 items as depicted in Table (1)

below (see Appendix 1 for the questionnaire). Respondents will be asked

to assess their agreement or disagreement with the items provided using

5 point Likert scale where 5 indicated strong agreement and 1 indicated

strong disagreement. The questionnaire also encompassed items

concerning the organizational characteristics included number of

employees, age of the organization, and respondents characteristics.

A total of 24 items were designed to measure strategic human resource

management practices. For each practice 4 items were adopted from

previous studies (Obidat, 2003; Almahmoud, 2004; Huisat, 2005; Katou

and Budhwar, 2007; Lee et al., 2010; Ekwoaba et al., 2015) in which such

scales were reported to be both reliable and valid. To measure business

strategy, 12 items were used; three for cost leadership strategy and three

for differentiation strategy, three items for focus strategy and three items

for cooperative strategy. These items were adopted from previous studies

42
(Haahti et al., 2005; Takeuchi, 2009; Bordes, 2009) in which such scales

were found to be both reliable and valid. Organization performance was

measured using 8 items. The items were adopted from previous studies

(Abu Riyaleh, 2007; Katou and Budhwar, 2007; Alkalha et al., 2012; Wysi,

2009; Altarawneh, 2016) and they were reported to be both reliable and

valid.

4.2.1 Research Questionnaire Sources

Table (1): Research questions sources

Source Section Item

Katou and Budhwar Your organization makes an .1
(2007) assessment of training and
development
before and after the assessment
Obidat (2003) Your organization uses many .2
different developmental and
Human resource training programs
Lee et al. (2010) practices-Training and There are formal training.3
development programs to teach new hires the
skills they need to perform their
job at your rm
Lee et al. (2010) Formal training programs are .4
offered to employees in order to
increase their chances of being
.promoted at your rm
Lee et al. (2010) Incentive system at your .5
organization encourages
employees to pursue company
.objective
Lee et al. (2010) Incentive system at your .6
organization is fair at rewarding
people who accomplish a
Compensation .company objective
Lee et al. (2010) Incentive system at your .7
organization encourages people
.to reach company goals
Lee et al. (2010) Incentive system at your .8
organization really recognizes
people who contribute the most
.to the company
Katou and Budhwar Performance appraisal Your organization .9

43
 Source Section Item
(2007) applies a policy of
performance's
evaluation regularly
and
Periodically
Katou and Budhwar Your organization .10
(2007) uses a variety of
methods to assess the
performance
depending on the
nature of the jobs
Almahmoud (2004) Performance .11
appraisal in your
organization is based
on specific criteria
related to
job description
Almahmoud (2004) Performance .12
appraisal is used as an
essential tool to
determine the low
staff performance to
train them and
upgrade their level
Huisat (2005) Your organization .13
has a long-term human
resources plan
Obidat (2003) Your organization .14
uses forecasting tools
to determine the future
needs of human
Resources
Obidat (2003) Your organization .15
HR planning analyzes the external
environment to
determine the
presence
and abundance of
human resources
Lee et al. (2010) There are number .16
of people involved in
planning at your
organization

44
 Source Section Item
Ekwoaba et al. (2015) Your organization .17
uses objective
recruitment and
selection criteria
Obidat (2003) Your organization is .18
seeking to obtain
higher skills and
Recruitment and competencies in the
selection market
Ekwoaba et al. (2015) Your organization has a .19
policy
which guides the recruitment
activities
Katou and Budhwar Your organization uses a.20
(2007) number of ways to choose jobs
applicants
Lee et al. (2010) Employees in their jobs can .21
expect to stay at your rm for as
.long as they wish
Lee et al. (2010) It is very difcult to dismiss .22
an employee from his/her job at
your rm
Lee et al. (2010) Job security Job security is almost .23
guaranteed to employees in
.their jobs at your rm
Lee et al. (2010) If your rm were facing .24
economic problems, employees
in their jobs would be the last to
.get cut
Takeuchi (2009) Business Strategy- This company introduces .25
Differentiation many new products to the
.market
Takeuchi (2009) This company introduces .26
more new products than
.competitors
Takeuchi (2009) This company offers a wide .27
variety of products in its
product line
Takeuchi (2009) This company pursues .28
market leadership by being a
low-cost producer
Takeuchi (2009) This company charges .29
Cost leadership
lower prices than competitors
Takeuchi (2009) This company stresses .30
charging the lowest prices in the
market

45
 Source Section Item
Boreds (2009) Targeting a clearly identied .31
segment
Boreds (2009) Offering products suitable .32
Focus for a high price segment
Boreds (2009) Offering specialty products .33
tailored to a customer
group
Haahti et al. (2005) Cooperated with.34
domestic or foreign
partners for the
extension of product
range, research and
development
Haahti et al. (2005) Cooperated with .35
Cooperative domestic or
foreign partners for
sales and marketing
Haahti et al. (2005) Cooperated with .36
domestic or
foreign partners for
transportation and
warehousing
Altarawneh (2016) Organization Increase in overall level of .37
performance profitability
Alkalha et al. (2012) Your organization .38
has achieved its
objectives for the
previous financial
Year
Abu Riyaleh (2007) The proportion of .39
employees who leave
the work in your
organization is
continuously
decreasing
Abu Riyaleh (2007) Your organization's .40
policies and regulations
contribute overall to
'employees
retention
Katou and Budhwar There is a clear .41
(2007) career path for your
work at your
organization

46
 Source Section Item
Abu Riyaleh (2007) Working at your .42
organization is with
challenge and not
boring
Wysi (2009) You are proud .43
because you are
working in your
organization
Wysi (2009) You are ready to .44
make more effort
required for the
success of the work
of your organization

5. Research Limitations

The lack of empirical evidence in the current study is certainly a

drawback. Therefore, it is highly recommended that future research

include collection of data in order to support the research hypotheses.

Moreover, this study intends to use a cross-sectional design. Strategy and

its outcomes are to be depicted on the long run. Thus, future research

about strategy, human resource practices and performance should use a

longitudinal study that will be more capable of capturing the development

of such relationship.

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