Impact of human resource development (HRD) practices on pharmaceutical industry’s performance

Abstract

PurposeThe purpose of this paper is to examine the mediating role of employee performance in the association between human resource development (HRD) practices and organizational performance.Design/methodology/approachAn integrated research model was developed by combining principal factors from existing literature. Data were collected through questionnaire from 700 employees of the selected pharmaceutical industries. The validity of the model and hypotheses was tested using structural equation modeling. The reliability and validity of the dimensions are established through confirmatory factor analysis.FindingsThe results indicate that some HRD practices influence organizational performance through their impact on employee performance. The study further revealed that employee performance mediates the association between HRD practices and organizational performance.Research limitations/implicationsThe research was undertaken in the pharmaceutical industry and the analysis is based on cross-sectional data, which cannot be generalized across a broader range of sectors.Practical implicationsThe findings of the study have the potential to help policy makers, stakeholders and management of pharmaceutical industries in adopting properly and well-articulated HRD practices to enhance the quality of human capital and create sustainable competitive advantage.Originality/valueThis study extends the literature by adducing evidence empirically that employee performance mediated the association between HRD practices and organizational performance of the pharmaceutical industry in Ghana.