Abstract
This study proposed a framework for the moderating effect of Firm Size and the Firm Age (Years of implementation of Quality Management Practices) on the Impact of Human Resource Management (HRM) Practices and the Implementation of Quality Management System (QMS) on business performance of manufacturing firms in Sri Lanka. However, the extensive Literature review revealed that relatively few studies have attempted to consider the relationship between Total Quality Management (TQM) and business performance, ISO 9000 certified companies and business performance, and HRM practices and business performance by researchers in different countries including Sri Lanka in the different context. The majority of the studies conducted on the relationships between the constructs have presented different findings. Moreover, no studies have been conducted to determine the moderating effect of the variables like Firm Size and Firm Age (Years of implementation of Quality Management System) on the relationship of HRM practices and business performance in manufacturing firms and also the moderating effect of the same variables on the relationship between the Implementation of Quality Management Systems (QMS) and business performance in manufacturing firms. In order to bridge the gap in the literature, this study proposes a conceptual model identifying two moderating variables Firm Size and Firm Age (years of Implementation of QMS) based on the extensive review of the literature. Hence, a research framework has been propounded to ascertain the relationships between the constructs in a future study. This conceptual model is significant to policy makers, government, regulators, and financial Institutions on the need to provide information on moderating effect of variables to the real and potential entrepreneurs for manufacturing firms’ development in Sri Lanka. In addition, the conceptual model will serve as additional literature on the business performance of manufacturing firms in emerging economies like Sri Lanka that has not been explored.
Highlights
The business environment has become very competitive and challenging with the globalization of trade activities and the manufacturing firms have to make changes to meet the new requirements in the business world
The paper draws on a database of reviews of research previously conducted in human resource management and quality management systems covering books, journal articles, and other research papers over the past decades
According to (Khan, 2010), the relationship between Human Resource Management (HRM) practices and organizational performance, the results revealed that the relationship was a significant positive one
Summary
The business environment has become very competitive and challenging with the globalization of trade activities and the manufacturing firms have to make changes to meet the new requirements in the business world. In this context, Schuler and Jackson (2005), indicate that in the competitive and unstable markets, Human Resource Management practices (HRMP) can be used as a source to generate novel ideas to turn the organizations to achieve competitive advantage. According to Pfeffer (1994); Barney and Wright (1998), organizations that are competitive in global markets maintain the position to gain the competitive advantage because of managing organization specific human resources and system
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