Methodological Issues in Cross-Sectional and Panel Estimates of the Human Resource-Firm Performance Link
نویسندگان
چکیده
Because companies differ in factors such as management ability that may lead to both high performance work systems and enhanced firm performance, conventional estimates of the effects of human resource (HR) management practices on firm performance may be biased upward. Alternatively, if HR management practices are measured with error, estimates of their effects on firm performance may be biased downward. We find that although longitudinal estimates that avoid the first source of bias are substantially smaller than cross-sectional estimates, the former are strongly influenced by errors in measuring HR management practices. Based on independent estimates of the measurement error, we calculate a range of estimates that correct for both biases. We estimate that a one standard deviation increase in our measure of high performance work systems raises the market value of the corporation by approximately $15,000 per employee.
منابع مشابه
The Nexus among Resource Based Theory, Marketing Strategy, and Firm Performance: An Integrated Framework
The purpose of this article is to present the link among resource based theory, marketing strategy, and firms’ performance in order to propose integrative framework showing how the three constructs are linked. It is organized based on a review of academic literature on resource based theory and marketing strategy chronicled in major marketing journals up to December 2015. Besides, the paper ref...
متن کاملAbility Mediation Effects in the Relationships between Human Resource Practices and Service Quality
In this study, the relationships between Human Resource Practices (HRPs), firm performance (service quality), and the mediation effects of employees’ abilities were examined. To assess the relationships between variables, before evaluating the fitted structural model, the measurement model was defined to verify that the measurement variables used to reflect the unobserved constructs do so in a ...
متن کاملthe effect of household's income gap on children's educational gap whit emphasize on demographic factors
one of the problems of human societies is depriving people, especially children, of the healing elixir of education. In Iran, too, statistics comparing the academic performance of students on both sides of the income spectrum indicate that the educational gap is clearly visible along the income gap. In other words, along with the income poverty of parents, children also benefit from lower level...
متن کاملDynamic panel models of firm growth and profit
This paper unifies the growth and profit strands in the industrial organization literature, by testing both the Law of Proportionate Effect and the Persistence of Profit hypothesis within a two-equation model capturing the bi-directional relationship between growth and profit. The model is estimated over a large panel data set comprising firms in five European countries. While there is an inver...
متن کاملInformation sharing and credit: Firm-level evidence from transition countries
We investigate whether information sharing among banks has affected credit market performance in the transition countries of Eastern Europe and the former Soviet Union, using a large sample of firm-level data. Our estimates show that information sharing is associated with improved availability and lower cost of credit to firms. This correlation is stronger for opaque firms than transparent firm...
متن کامل