Strategic human resource management, market orientation, and organizational performance

Research emerging from different fields of organizational analysis has linked both market orientation and strategic human resource management (SHRM) to organizational performance. Although both concepts are premised on the management of organizational culture, no study has investigated their interrelationship or the dynamics between the two concepts and organizational performance. The findings of the paper suggest a direct link between market orientation and performance and indicate that the association between SHRM and performance is mediated by the extent of market orientation exhibited by the organization. Hence, it is argued that SHRM can be viewed as an antecedent to market orientation. These findings lead to a number of conclusions and implications for both theorists and practitioners.