Abstract
This study deals with the issue whether HRM policies/practice are cultural specific with consideration on the moderating effect of firm strategy. Based on relevant literature, we predict that HRM is cultural-specific and the alignment of HRM with societal culture should have a positive effect on firm performance. Also, we argue that a contingent factor, i.e., firm strategy of product diversification, should have a direct negative effect on firm performance. Moreover, this firm strategy should also moderate the relationship between the HRM policy/strategy and firm performance. Testing the relevant hypotheses in a major emerging economy, i.e., P.R. China, we collected data from multiple source and found evidence supporting our hypotheses. The paper concludes with a discussion of the implications of the findings.
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