The Relationship Between Human Resource Management Practices,Knowledge Management Practices,and Performance: Evidence from the Healthcare Industry in India

Abstract

The objective of the present study is to examine the impact of human resource management (HRM) practices on organizational performance. Knowledge management (KM) practices as a moderator in the relationship between HRM practices and organizational performance are studied by developing a conceptual model. Using a structured survey instrument, the data were collected from 979 employees from 10 hospitals in the southern part of India (Tiruchirappalli District of Tamil Nadu). After thoroughly checking the instrument’s measurement properties using the LISREL, hierarchical regression was performed to test the hypotheses. The results support (a) compensation and rewards, performance appraisal and learning culture that are positively and significantly related to organizational performance; (b) recruitment and selection, training and development that are not significantly related to organizational performance; and (c) KM practices that moderate the relationship between (a) training and development and organizational performance, and (b) learning culture and organizational performance. Finally, the implications for HRM and KM are discussed.

Keywords

Knowledge Management HRM practices healthcare industry India

Get full access to this article

View all access options for this article.

References

Ahmed

, Kura

K. M.

, Umrani

W. A.

, & Pahi

M. H.

(2020). Modelling the link between developmental human resource practices and work engagement: The moderation role of service climate. Global Business Review , 21(1), 31–53.

Akinbowale

M. A.

, Lourens

M. E.

, & Jinabhai

D. C.

, (2013). Role of performance appraisal policy and its effects on employee performance. European Journal of Business and Social Sciences , 2(7), 19–26.

Allen

R. S.

, & Helms

M. M.

(2001). Reward practices and organizational performance. Compensation and Benefits Review , 33(40), 74–80.

Andreeva

, & Kianto

(2012). Does knowledge management really matter? Linking KM practices, competitiveness and economic performance. Journal of Knowledge Management , 16(4), 617–636.

Appelbaum

, Bailey

, Berg

, & Kalleberg

A. L.

(2000). Manufacturing advantage: Why high-performance work systems pay off. ILR Press.

Argote

, & Fahrenkopf

(2016). Knowledge transfer in organizations: The roles of members, tasks, and tools, and networks. Organizational Behavior and Human Decision Processes , 136, 146–159.

Bae

, & Lawler

J. J.

(2000). Organizational and HRM strategies in Korea: Impact on firm performance in an emerging economy. Academy of Management Journal , 43, 502–517.

Bagozzi

R. P.

, Yi

, & Phillips

L. W.

(1991 September). Assessing construct validity in organizational research. Administrative Science Quarterly , 36(3), 421.

Bailey

(1993). Discretionary effort and the organization of work: Employee participation and work reform since Hawthorne. Teachers College and Conservation of Human Resources, Columbia University .

10.

Barney

(1991). Firm resources and sustained competitive advantage. Journal of Management , 17, 99–120.

11.

Bates

(2003). Performance appraisals: Some improvement needed. Human Resources Journal , 48(7), 11–19.

12.

Becker

, & Gerhart

(1996). The impact of human resource management on organizational performance: Progress and Prospects. The Academy of Management Journal , 39(4), 779–801.

13.

Beer

, Boselie

, & Brewster

(2015). Back to the future: Implications for the field of HRM of the multistakeholder perspective proposed 30 years ago. Human Resource Management , 54(3), 427–438. https://doi.org/10.1002/hrm.2015.54.issue-3

14.

Black

J. S.

, & Gregersen

H. B.

(1997). Participative decision-making: An integration of multiple dimensions. Human Relations , 50(7), 859–878.

15.

Boselie

(2014). Strategic human resource management. A balanced approach (2nd ed.) . McGraw Hill.

16.

Boxall

, & MacKy

(2009). Research and theory on high-performance work systems: Progressing the high-involvement stream. Human Resource Management Journal , 19(1), 3–23. http://dx.doi.org/10.1111/j.1748–8583.2008.00082.x

17.

Bhatti

W. A

, Zaheer

, & Rehman

(2011). The effect of knowledge management practices on organizational performance: A conceptual study. African Journal of Business Management , 5(7), 2847–2853.

18.

Camelo-Ordaz

, Garcıa-Cruz

, Sousa-Ginel

, & Valle Cabrera

(2011). The influence of human resource management on knowledge sharing and innovation in Spain: The mediating role of affective commitment. The International Journal of Human Resource Management , 22(7), 1442–1463.

19.

Chen

C.J.

, & Huang

J.W.

(2009). Strategic human resource practices and innovation performance—Mediating role of knowledge management capacity. Journal of Business Research , 62(1), 104–114.

20.

Chen

C. J.

, Huang

J. W.

, & Hsiao

Y. C.

(2010). Knowledge management and innovativeness: The role of organizational climate and structure. International Journal of Manpower , 31(8), 848–870.

21.

Chang

, & Lee

(2007). The effects of organisational culture and knowledge management mechanisms on organisational innovation: An empirical study in Taiwan. The Business Review , 7(1), 295–301.

22.

Choi

J.-H.

(2014). The HR-performance link using two differently measured HR practices. Asia Pacific Journal of Human Resources , 52(3), 370–387. http://dx.doi.org/10.1111/1744-7941.12009

23.

Combs

, Liu

, Hall

, & Ketchen

(2006). How much do high-performance work practices matter? A meta-analysis of their effects on organizational performance. Personnel Psychology , 59(3), 501–528. https://doi.org/10.1111/j.1744–6570.2006.00045.x

24.

Collins

C. J.

, & Smith

K. G.

(2006). Knowledge exchange and combination: The role of human resource practices in the performance of high-technology firms. Academy of Management Journal , 49(3), 544–560.

25.

, Pandey

, & Pal

(2020). Impact of digital surge during Covid-19 pandemic: A viewpoint on research and practice. International Journal of Information Management , 55, 102171. https://doi.org/10.1016/j.ijinfomgt.2020.102171

26.

Delaney

J. T.

, & Huselid

M. A.

(1996). The impact of human resource management practices on perceptions of organizational performance. Academy of Management Journal , 39(4), 949–969.

27.

Donate

M. J.

, & de Pablo

J. D.

(2015). The role of knowledge-oriented leadership in knowledge management practices and innovation. Journal of Business Research , 68, 360–370.

28.

Delaney

J. T.

, Lewin

, & Ichniowski

(1989), Human Resource Policies and Practices in American Firms. Washington, DC: US Government Printing Office.

29.

Demo

, Neiva

E. R.

, Nunes

, & Rozzett

(2012). Human resources management policies and practices scale (HRMPPS): Exploratory and confirmatory factor analysis. Brazilian Administrative Review , 9(2), 395–420.

30.

Demortier

A.-L.

, Delobbe

, & El Akremi

(2014). Opening the black box of Hr practices -performance relationship: Testing a three pathways Amo Model. Academy of Management Annual Meeting Proceedings , (M), 1201–1206. http://dx.doi.org/10.5465/ambpp.2014.102

31.

Edgar

, & Geare

(2005). HRM practice and employee attitudes: different measures—Different results. Personnel Review , 34(5), 534–549.

32.

Ehrlich

C. J.

(1994). Creating an employer–employee relationship for the future. Human Resource Management , 33(3), 491–501.

33.

Figueiredo

, Pais

, Monteiro

, & Monico

(2016). Human resource management impact on knowledge management: Evidence from the Portuguese banking sector. Journal of Service Theory and Practice , 26(4), 497–528.

34.

Fong

, Ooi

, Tan

, Lee

, & Chong

A. Y. -L

. (2011). HRM practices and knowledge sharing: An empirical study. International Journal of Manpower , 32(5/6), 704–723.

35.

Foss

, & Michailova

S. (Eds.)

. (2009). Knowledge governance: Processes and perspectives. Oxford University Press.

36.

Ferris

G. R.

, Hochwarter

B. A.

, Ronald Buckley

, Harrell-Cook

, & Frink

D. D.

(1999), Human resource management: Some new directions. Journal of Management , 25(3), 385–415.

37.

Fornell

, & Larcker

D. F.

(1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research , 18(1), 39–50

38.

Gooderham

, Parry

, & Ringdal

(2008). The impact of bundles of strategic human resourcemanagement practices on the performance of European firms. The International Journal of Human Resource Management , 19(11), 2041—2056.

39.

Gope

, Elia

, & Passiante

(2018). The effect of HRM practices on knowledge management capacity: A comparative study in Indian IT industry. Journal of Knowledge Management , 22(3), 649–677. https://doi.org/10.1108/JKM-10–2017-0453

40.

Guest

D. E.

(2002). Human resource management, corporate performance and employee wellbeing: building the worker into HRM. Journal of Industrial Relations , 44(3), 335–358.

41.

Guthrie

J. P.

(2001). High-involvement work practices, turnover and productivity: Evidence from New Zealand. Academy of Management Journal , 44, 180–190.

42.

Greenberg

(1990). Organisational justice: Yesterday, today and tomorrow. Journal of Management , 16, 399–432.

43.

Hair

J. F.

, Ringle

C. M.

, & Sarstedt

(2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice , 19(2), 139–151. https://doi.org/10.2753/MTP1069–6679190202

44.

Harber

D. G.

, Ashkanasy

N. M.

, & Callan

V. J.

(1997). Implementing quality service in a public hospital setting: A path-analytic study of the organisational antecedents of employee perceptions and outcomes. Public Productivity and Management Review , 21(1), 13–29.

45.

Hsiao

, Chen

, & Chang

(2011). Knowledge management capacity and organizational performance: The social interaction view. International Journal of Manpower , 32(5/6), 645–660.

46.

Huselid

M. A.

(1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal , 38(3), 635–672.

47.

Huselid

M. A.

, Jackson

S. E.

, & Schuler

R. S.

(1997). Technical and strategic human resource management effectiveness as determinants of firm performance. Academy of Management Journal , 40(1), 171–188.

48.

Husted

, & Michailova

(2002). Diagnosing and fighting knowledge-sharing hostility. Organizational Dynamics , 31(1), 60–73.

49.

Indian Brand Equity Foundation (IBEF). (2020). https://www.ibef.org/industry/healthcare-India.aspx#:~:text=The%20Government%20has%20announced%20Rs,Product%20(GDP)%20by%202022

50.

Irawanto

D. W.

(2015). Employee participation in decision-making: Evidence from a state-owned enterprise in Indonesia. Management , 20(1), 159–172.

51.

Ismail

A. I.

, Majid

A. H. A.

, Jibrin-Bida

, & Joardar

M. H. R.

(2021). Moderating effect of management support on the relationship between HR practices and employee performance in Nigeria. Global Business Review , 22(1), 132–150.

52.

James

L. R.

, Demaree

R. G.

, & Hater

J. J.

(1980). A statistical rationale for relating situational variables and individual differences. Organizational Behavior and Human Performance , 25, 354–364. https://doi.org/10.1016/0030–5073(80)90033–1

53.

Jimenez-Jimenez

, & Sanz-Valle

(2012). Studying the effect of HRM practices on the knowledge management process. Personnel Review , 42(1), 28–49.

54.

Kane

J. S.

, & Lawler

E. E.

(2009). Performance appraisal effectiveness: Its assessment and determinants. In Staw

B. M.

(Ed.), Research in organizational behavior (Vol. 1, pp. 425–78). JAI Press.

55.

Kennedy

(1979). A guide to econometrics (2nd ed.). MIT Press.

56.

Khandekar

, & Sharma

(2005). Organizational learning in Indian organizations: A strategic HRM perspective. Journal of Small Business and Enterprise Development , 12(2), 211–226.

57.

Kianto

, Ritala

, Spender

J. C.

, & Vanhala

(2014). The interaction of intellectual capital assets and knowledge management practices in organizational value creation. Journal of Intellectual Capital , 15(3), 362–375.

58.

Kock

(2017). Common method bias: A full collinearity assessment method for PLS-SEM. In Partial least squares path modeling (pp. 245–257). Springer.

59.

Kozlowski

S. W. J.

, & Klein

K. J.

(2000). A multi-level approach to theory and research in organizations: Contextual, temporal, and emergent processes. In Klein

K. J.

, & Kozlowski

S. W. J.

(Eds.), Multilevel theory, research, and methods in organizations (pp. 3–90). Jossey-Bass.

60.

Kumar

A. K.

, Nongmaithem

, Sharma

, & Tripathi

(2011). The impact of strategic human resource management on the performance of firms in India A study of service sector firms. Journal of Indian Business Research , 3(3), 148–167.

61.

Lee

, & Bai

(2018). The effects of knowledge sharing on individual creativity in higher education institutions: Socio-technical view. Administrative Sciences , 8, 21. https://doi.org/10.3390/admsci8020021

62.

Lee

, Leong

, Hew

, & Ooi

(2013). Knowledge management: A key determinant in advancing technological innovation? Journal of Knowledge Management , 17(6), 848–872.

63.

Lengnick-Hall

M. L.

, Lengnick-Hall

C. A.

, Andrade

L. S.

, & Drake

(2009). Strategic human resource management: The evolution of the field. Human Resource Management Review , 19, 64–85.

64.

Lin

H. F.

(2011). The effects of employee motivation, social interaction, and knowledge management strategy on KM implementation level. Knowledge Management Research and Practice , 9(3), 263–275.

65.

Lin

H. -F

. (2014). A multi-stage analysis of antecedents and consequences of knowledge management evolution. Journal of Knowledge Management , 18(1), 52–74.

66.

Longenecker

C. O.

, & Goff

S. J.

(2003). Performance Appraisal effectiveness: A matter of perspective. Advanced Management Journal , 57(2), 18–23.

67.

Marin-Garcia

J. A.

, & Tomas

J. M.

(2016). Deconstructing AMO framework: A systematic review. Intangible Capital , 12(4), 1040–1087. http://dx.doi.org/10.3926/ic.838

68.

Marsick

V. J.

, & Watkins

K. E.

(2003). Demonstrating the value of an organization’s learning culture: The dimensions of the learning organization questionnaire. Advances in Developing Human Resources , 5, 132–151.

69.

Mellahi

, & Wood

G. T.

(2001). Human resource management in Saudi Arabia. In Budhwar

P. S.

, & Debrah

Y. A.

(Eds.), Human resource management in developing countries (pp. 135–151). Routledge.

70.

Molina-Azorín

J. F.

, Pereira-Moliner

, Lopez-Gamero

M. D.

, Pertusa-Ortego

E. M.

, & Tari

J. J.

(2019). Multilevel research: Foundations and opportunities in management. Business Research Quarterly . https://doi.org/10.1016/j.brq.2019.03.004

71.

Moideenkutty

, Al-Lamki

, & Murty

S. R. Y.

(2011). HRM practices and organizational performance in Oman. Personnel Review , 40(2), 239–251.

72.

Moorman

R. H.

(1991). Relationships between organizational justice and organizational citizenship behaviors: Do fairness perceptions influence employee citizenship? Journal of Applied Psychology , 76(6), 845–855.

73.

Mwema

N. W.

, & Gachunga

H. G.

(2014). The influence of performance appraisal on employee productivity in organizations: A case study of selected who offices in East Africa. International Journal of Social Sciences and Entrepreneurship , 1(11), 324–337.

74.

Nigam

A. K.

, Nongmeithem

, Sharma

, & Tripathi

(2011). The impact of strategic human resource management on the performance of firms in India: A study of service sector firms. Journal of Indian Business Research , 3(3), 148–167.

75.

Netemeyer

R. G.

, Johnston

M. W.

, & Burton

(1990). Analysis of role conflict and role ambiguity in a structural quation framework. Journal of Applied Psychology , 75(2), 148–157.

76.

Obeidat

B. Y.

, Masa’deh

, & Abdallah

A. B.

(2014). The relationships among human resource management practices, organizational commitment, and knowledge management processes: A structural equation modeling approach. International Journal of Business and Management , 9(3), 9–26

77.

Paauwe

, Guest

D. E.

, & Wright

P. M. (Eds.)

. (2013). HRM and performance: Achievements and challenges. John Wiley & Sons.

78.

Parayitam

, Usman

S. A.

, Namasivaayam

R. R.

, & Naina

M. S.

(2020). Knowledge management and emotional exhaustion as moderators in the relationship between role conflict and organizational performance: Evidence from India. Journal of Knowledge Management. https://doi.org/10.1108/JKM-03-2020-0184

79.

Pillai

(2016). An empirical study on the role of HR practices in knowledge sharing with special reference to IT/ITeS firms. International Journal of Applied Engineering Research , 11(6), 3814–3818.

80.

Podsakoff

, Mackenzie

, Lee

, & Podsakoff

(2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology , 88, 879–903.

81.

Pradhan

R. K.

, Dash

, & Jena

L. K.

(2019). Do HR practices influence job satisfaction? Examining the mediating role of employee engagement in Indian public sector undertakings. Global Business Review , 20(1), 119–132.

82.

Rao

T. V.

, & Abraham

(1991). HRD climate in organizations. In Rao

T.V.

(ed.), Readings in Human Resource Development . New Delhi: Oxford and IBH.

83.

Rodwell

J. J.

, & Teo

S. T. T.

(2008). The influence of strategic HRM and sector on perceived performance in health services organizations. The International Journal of Human Resource Management , 19(10), 1825—1841.

84.

Singh

M. D.

, Shankar

, Narain

, & Kumar

(2006). Survey of knowledge management practices in Indian manufacturing industries. Journal of Knowledge Management , 10(6), 110–128.

85.

Singh

P. K.

, & Rao

M. K.

(2017). HR practices, learning culture and human capital: A study on Indian business and professional service sector. Global Business Review , 18(3), 678–690.

86.

Sivapragasam

, & Raya

R. P.

(2018). HRM and employee engagement link: Mediating role of employee well-being. Global Business Review , 19(1), 147–161.

87.

Singh

, Darwish

T. K.

, Wood

, & Fattaah

P.M.A.

(2020). Institutions, complementarity, human resource management, and performance. In Darwish

T. K.

, & Fattaah

P. M.A.

(eds.), Human Resource Management in an emerging South Asian Economy: The case of Brunei. New York: Routledge.

88.

Usman

S. A.

, Kowalski

K. B.

, Andiappan

V. S.

, & Parayitam

(2021). Effect of knowledge sharing and interpersonal trust on psychological capital and emotional intelligence in higher-educational institutions in India: Gender as a moderator. FIIB Business Review. https://doi.org/10.1177/23197145211011571

89.

Wan

, Kok

, & Ong

C. H.

(2002). Strategic human resource management and organizational performance in Singapore. Compensation and Benefits Review , 34, 33–42.

90.

Wanjala

M. W.

, & Kimutai

(2015). Influence of performance appraisal on employee performance in commercial banks in trans Nzoia County—Kenya. International Journal of Academic Research in Business and Social Sciences , 5(8), 332–343.

91.

Wood

, & de Menezes

L. M.

(2011). High involvement management, high performance work systems and well-being. The International Journal of Human Resource Management , 22(7), 1586–1610.

92.

Wright

P. M.

, Dunford

B. B.

, & Snell

S. A.

(2001). Human resources and the resource-based view of the firm. Journal of Management , 27, 701–721.