The Strategic HRM Configuration for Competitive Advantage: Evidence from Japanese Firms in China and Taiwan∗
NORIHIKO TAKEUCHI†
Abstract. The purpose of the present study was to identify the pattern of HRM practices that would lead to
an improvement in business performance in Chinese- and Taiwanese-based Japanese affiliates in the light of a
configurational perspective, following the current debate in the field of strategic human resource management
(SHRM). In particular, a set of working hypotheses regarding the structural relationship among HRM practices
for producing enhanced business results was drawn from the organizational learning theoretical framework that
emphasizes a linkage between the process of learning and firm performance. Our conceptual model and specific
hypotheses were examined using a sample of 286 Japanese affiliates operating in Mainland China and Taiwan.
The results provided basic support for the configurational hypothesis in predicting the financial aspect of an
affiliate’s performance. It is argued that the findings of the study have several important implications for the
untested relationships between high commitment work practices (HCWPs) and high performance work systems
(HPWSs) from a Japanese management perspective. In addition, the manner in which each HRM technique can
be used by Japanese overseas affiliates to enhance their learning and adaptive capabilities is discussed.
Keywords: HRM practices, organizational performance, configurational perspective, organizational learning,