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This study analyzes the moderating effect of two key human resource practices on the relationship between organizational strategy and firm performance. In a sample of 66 small to medium-sized manufacturing firms we found that a total quality management strategy was most effective when supported by significant training and group-based incentive compensation. This result is discussed in light of the current debate in the field about “best practice” versus “fit” models of human resource management and business strategy.
Chandler et al. (Sun,) studied this question.
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