Linking human resource management, entrepreneurial orientation, and firm performance: an integrative theoretical framework

Abstract

As a growing field of analysis in management studies, several scholars have been looking at the role of human resource management (HRM) practices in boosting a firm's entrepreneurial orientation (Tansky et al., 2009). On the other hand, entrepreneurial orientation has been repeatedly proven to positively impact firm performance both at the organisational level, but also at the level of enterprise clusters. This means that within high-entrepreneurial orientation firm clusters, both the overall cluster and the firms' individual performances are positively affected (Yao et al., 2009). However, existing literature provides little guidance on how HRM practices could help firms improve their performance through fostering entrepreneurial orientation. This paper aims to shed more light on how human resource management could become a major driver of firm performance while leveraging on learning to translate individual and collective abilities into value adding entrepreneurial actions. For this purpose, this paper follows a systematic literature review as a recognised evidence-based tool for theory building (Tranfield et al., 2003). The objective is to develop an integrative theoretical framework that explains how HRM practices provide firms with superior performance, using entrepreneurial orientation as an intermediate construct.