Examining the link between human resource management orientation and firm performance

This paper examines the relationship between HRM (in terms of the orientation of the function) and firm performance in Greek firms, using the universalistic approach. In order to acquire a better view of this much‐researched issue, measures for various aspects of firm performance have been used, controlling for external environment, competitive strategy, and organizational size. The research findings show that HRM has a more significant influence on growth/innovation indices, as opposed to financial performance. Also, high orientation in all HRM models does not lead to improved firm performance, as was initially expected.