Causal modelling of HR flexibility and firm performance in Indian IT industries

Abstract

PurposeThis paper aims to measure the human resource (HR) flexibility and firm performances confirmatory model and to map the causal relation structures in the HR flexibility and firm performance dimensions using the DEMATEL method.Design/methodology/approachData were collected from leading national and multinational information technology (IT) firms operating in the southern part of India. Confirmatory factor analysis was used to measure the confirmatory model, and the DEMATEL method was used to map the causal relation among the dimensions of HR flexibility and firm performance.FindingsHR flexibility could exist across IT firms. Organisations are required to anticipate and respond promptly to changing conditions in such a way that both technical and stakeholders’ complexity are effectively managed.Research limitations/implicationsThe study was conducted at leading national and multinational IT firms operating in the southern part of India.Practical implicationsHR flexibility allows employees with a wide variety of work styles and lifestyles to be successful contributors, to advance and to lead in the parent firm. It brings out diversity and individuality, shared responsibility, wholeness, etc., among the employees. It 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.Originality/valueConfirming the measurement model and mapping the causal relationship among the dimensions of HR flexibility and firm performance would be the novel contributions to the research in the areas of HR flexibility and firm performance with regard to IT firms. This paper contributes to the literature by theoretically and empirically investigating such relationships, thereby addressing the research gaps reviewed from literature.