This study examined the factorial validity of strategic human resource management practices and their effects on company performance in a sample of 465 Chinese enterprises. Data were collected through two questionnaire surveys among general managers and HRM directors on product/service performance of their companies and a range of strategic HRM practices. Our findings indicate that a valid set of strategic HRM practices (training, participation, results‐oriented appraisals, and internal career opportunities) affect both product/service performance and financial performance. Employment security and job descriptions contribute uniquely to product/service performance, whereas profit sharing contributes uniquely to financial performance.
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Akhtar et al. (2008) studied this question.
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