A Study of HR Flexibility and Firm Performance: A Perspective from IT Industry

Abstract

The paper aims to prioritize and map the causal relation structures in dimensions and sub-dimensions of HR-flexibility and firm performance using DEMATEL method. Data were collected from leading national and multinational IT firms operated in southern part of India. Decision-Making Trial and Evaluation Laboratory (DEMATEL) method used to prioritize and map the causal relation among the dimensions of HR flexibility and firm performance. HR flexibility could exist across IT firms. Organisations are required to anticipate and respond promptly to changing conditions in such a way that effectively manage both technical and stakeholders complexity. Use of survey data has its limitations, especially when the sample sizes are small. The study conducted at leading national and multinational IT firms operated in southern part of India. HR flexibility brings out diversity and individuality, shared responsibility, wholeness, etc. among the employees. It also applies to work schedules and career paths across the organisation. IT firms are advised to adopt an external focus, an organic and employee-oriented approach, and long-term orientation. Mapping, the causal relationship among the dimensions of HR flexibility and firm performance, would be the novel contribution to the research in the area of HR-flexibility and firm performance considering IT firms. This paper contributes to the literature by theoretically and empirically investigating such relationships, thereby addressing the research gaps reviewed from literature.