PurposeStrategic human resource management (SHRM) is seen as crucial for innovation and entrepreneurship in China. An empirical research was carried out to investigate main dimensions of the model of human resources management (HRM), practices and their effects on organisational performance in relation to innovation and entrepreneurship.Design/methodology/approachThe research has two parts. The first part is a field survey on human resource management practices and its main dimensions. The study was conducted in the Chinese local companies and joint ventures across different partnerships. The second part is an in‐depth case‐set analysis of Chinese entrepreneurship models from a strategic HRM perspective.FindingsThe results showed that both functional and strategic dimensions of HRM could be identified which had differential effects upon organisational performance and that the most successful local entrepreneurial firms were among the collective‐based and globally‐oriented ones.Originality/valueThis study demonstrated that the fit between strategic HRM practices, innovation strategy and entrepreneurship model was significantly contributed to entrepreneurial performance. A regional comparative model of SHRM and entrepreneurship was proposed for sustainable business developments and organisational change.