A study of the impact of Western HRM systems on firm performance in China

Based on a sample of 324 firms in China, the relationship between Western human resource management (HRM) systems and firm performance is examined. The results show that the degree of adoption of Western HRM practices made no statistically significant difference between Chinese and foreign firms and also generally supports the hypothesis that Western HRM systems are positively associated with firm performance in a Chinese context. In addition, the proposed “motivation and support” HRM system appeared to have stronger and more significant relationships than the “skill and development” HRM system. The underlying reasons were identified and some managerial implications for both Chinese and foreign firms were drawn. © 2012 Wiley Periodicals, Inc.