Abstract
Drawing on the interactionist approach and interest alignment theory, the current research examined the mediating effects of three dimensions of person environment fit- person organisation fit, person job fit, and person supervisor fit – on the relationship between high performance human resource practices (HPHRP) and firm performance. Survey data obtained from 3014 employees of research and development units, and 721 senior HR executives and top management team members belonging to 274 Indian-based pharmaceutical firms is analyzed to investigate a mediated pathway between HPHRP and firm performance. Findings of the current research established that HPHRP were positively and significantly related to person-organisation fit, person-job fit and person-supervisor fit and this facilitates firm performance and curtails employee turnover. Implications of the study to theory and practice are discussed.
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