This article explores the relationships between human resource (HR) flexibility, organizational culture, and organizational performance. Drawing on previous works, we develop a conceptual model that links the constructs together. It is hypothesized that the three sub-dimensions of HR flexibility (i.e. employee skill flexibility, employee behaviour flexibility, and HR practice flexibility) affect adaptability culture, which in turn impacts HR-related and market-related outcomes. The data were collected via a questionnaire survey of HR directors/managers in multinational corporations (MNCs) in Hong Kong. The results of structural equation modelling (SEM) reveal the positive effects of employee behaviour flexibility and HR practice flexibility on adaptability culture. Employee skill flexibility, however, exerts no such effect. Further, adaptability culture is found to affect both HR-related and market-related performance in a positive manner.
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Ngo et al. (2008) studied this question.