HRM PRACTICES, SHRM AND ORGANIZATIONAL PERFORMANCE: A CONFIGURATIONAL PERSPECTIVE

HR practices are essential for effective organizational performance. Previous studies asserted the role of HRM practices in boosting organizational performance. However dual aspect of HRM practices and SHRM (content and process perspective) has not been explored yet in tourism industry. Thus, the aim of this research is to examine the configurational relationship between HRM practices, SHRM, service innovation and organizational performance in relation to Malaysian hospitality and Tourism. Strategically alignedHRM practices along with service innovation (incremental and radical) boost organizational performance in the hospitality industry. This study seeks to investigate direct relationship of HRM practices and SHRM with organizational performance and also test mediational influence of service innovation. Methodological practices adopted to realize objective of study are grounded on survey technique. Study is descriptive and cross-sectional in nature. Data was collected from 4-star and 5-star deluxe hotels of Malaysia. Dual-stage sampling techniques(stratified random sampling and purposive sampling) were adopted for data collection.At first stage stratums were made on the basis of hotels’ 4-star and 5-star ranking and then purposive technique was used to select participants. Structural equation modeling (SEM) was used for analysis and hypothesis testing. Findings revealed that significant positive relationship exists between SHRM and organizational performance, service innovation and organizational performance HRM practices and service innovation. HRM practices do not have significant direct effect on organizational performance thus service innovation fully mediates the relationship between HRM practices and organizational performance while partially mediates the relationship between SHRM and performance. Findings of this research are believed to offer better insights to the managers of hotels about the best link of HRM practices their fit with strategic base and service innovation to improve performance.