Impact of the Relationship between HR policy and Practices on Corporate Growth

Author Name NISHIOKA Yumi  (Rissho University)
Creation Date/NO. June 2015 15-J-029
Research Project Study on Intangible Assets in Japan
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Using data collected from an interview survey of intangible assets in Japan, this study analyzes the relationship between internal fit of human resource management (HRM), which is the fit between a human resource (HR) policy and its subordinate concept HR practices, and its impact on corporate growth in Japan.

The empirical results are as follows: First, corporations which adopt both results-oriented and lifetime employment-oriented HR policies at the same time face a negative effect on their corporate growth. Second, results-oriented HR practices themselves have a positive effect on corporate growth, but interactions between results-oriented HR practices and HR development practices have a negative effect. Third, interactions between a lifetime employment-oriented HR policy and HR development practices indicate a positive effect, but interactions between a results-oriented HR policy and HR development practices indicate a negative effect on corporate growth. These results imply that corporations need to consider the importance of internal fit of HRM, and how the lack of internal fit might have a negative effect on corporate growth.