HR practices and New Zealand firm performance: what matters and who does it?

We examine the impact of human resource practices, especially those considered as parts of high performance work systems, on firm performance. The analysis is unique in using data from an economy-wide official survey to determine whether firms that adopt high performance HR practices perform better than their rivals. We find that adoption of a suite of high performance practices (and adoption of specific practices pertaining to staff training and performance pay) has a causal impact on firm outcomes. The strength of the relationships differs by firm size and age. Firms that adopt high performance practices are predominantly young and in high-tech related sectors.