High-Performance Human Resource Practices, Citizenship Behavior, and Organizational Performance - A Relational Perspective, Sun, Aryee, Law (2007)

High-Performance Human Resource Practices, Citizenship Behavior, and Organizational
Performance: A Relational Perspective

Author(s): Li-Yun Sun, Samuel Aryee and Kenneth S. Law
Source: The Academy of Management Journal, Vol. 50, No. 3 (Jun., 2007), pp. 558-577
Published by: Academy of Management
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Academy ofManagement Journal
2007, Vol. 50, No. 3, 558-577.
HIGH-PERFORMANCE HUMAN RESOURCE PRACTICES,

CITIZENSHIP BEHAVIOR, AND ORGANIZATIONAL
PERFORMANCE: A RELATIONAL PERSPECTIVE
LI-YUN SUN
Macau University of Science and Technology
SAMUEL ARYEE
Aston University
KENNETH S. LAW
The Chinese University of Hong Kong
Taking a relational perspective on the employment relationship, we examined pro

cesses (mediation and moderation) linking high-performance human resource prac
tices and productivity and turnover, two indicators of organizational performance.
Multilevel analysis of data from hotels in the People's Republic of China revealed that
service-oriented organizational citizenship behavior (OCB) partially mediated the
relationships between high-performance human resource practices and both perfor
mance indicators. Unemployment rate moderated the service-oriented OCB-turnover
relationship, and business strategy (service quality) moderated the service-oriented
OCB-productivity relationship.
Over the past decade or so the human resource (Batt, 2002; Ferris, Arthur, Berkson, Harrel-Cook, &
management function has come under pressure to Fink, 1998).
demonstrate its contribution to organizational per First, little consensus exists among researchers
formance (Stewart, 1996). Consequently, research regarding the to be included in
specific practices
in strategic human resource management has exam the configuration of high-performance human re
ined the influence on organizational performance source practices (Becker & Gerhart, 1996; Collins &
of high-performance human resource practices, 2006; Datta, Guthrie, & Wright,
Smith, 2005;
which are coherent practices that enhance the & &
Delaney Huselid, 1996; Delery Shaw, 2001;
skills of the workforce, participation in decision Ferris et al., 1998). For example, and
Delaney
making, and motivation to put forth discretionary Huselid observed that "the relevant literature is
effort (Appelbaum, Bailey, Berg, & Kalleberg, 2000:
distinguished by the fact that virtually no two stud
in . . .
26) and that ultimately "result superior inter ies measure HRM practices in the same way. ... As
mediate indicators of firm performance (i.e., those a result, we see the development of reliable and
indicators over which theworkforce has direct con valid measures of HRM systems to be one of the
trol) and sustainable competitive advantage" (Way, for . . . ad
primary challenges (and opportunities)
2002: 765). Although there is considerable evi
vancing this line of research" (1996: 967). Second,
dence that high-performance human resource prac
in spite of the documented relationship between
tices are associated with organizational perfor
high-performance human resource practices and or
mance (Appelbaum et al., 2000; Arthur, 1994; Bae
ganizational performance, the mechanism underly
& Lawler, 2000; Bartel, 2004; Batt, 2002; Guthrie,
ing this relationship remains a black box. Ferris
2001; Huselid, 1995; MacDuffie, 1995; Wright,
and his colleagues noted a dearth of research aim
Gardner, Moynihan, & Allen, 2005), a number of
theoretical and methodological limitations have ing to provide "a systematic explanation of pre
cisely how HRM system effects occur and operate
been highlighted in recent reviews of the literature
to influence organization effectiveness" (1998: 237;
cf. Appelbaum et al., 2000; Batt, 2002; Bowen &
Ostroff, 2004; Collins & Smith, 2006; Evans &
We thank Editor Sara Rynes and three anonymous
reviewers for their insightful comments on drafts of this Davis, 2005). Lastly, although the service sector has
article and for their encouragement. Correspondence
re emerged as a major contributor to gross domestic
garding this article should be sent to Samuel Aryee product (GDP) in many industrialized and transi
([email protected]).
tional economies, the literature is framed primarily
558
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2007 Sun, Aryee, and Law 559
this study is essentially an effort to examine the

by the study of manufacturing organizations (Bo
wen & Schneider, 1988). Batt (2002: 587) noted a patterns of relationships conducive to organization
number of differences between the manufacturing al performance and the behaviors that create and
sector and the service sector that limit the extent to sustain these relationships (Evans & Davis, 2005;
which findings in the former generalize to the lat Tsui, Pearce, Porter, & Tripoli, 1997). A relational
ter; differences in the role of customers in the pro approach to the employment relationship ad
duction process is one example. dresses the processes through which an organiza
In view of the preceding limitations, data ob tion develops a high-quality, open-ended relation
tained from the hotel industry in the People's Re ship with its employees and is characterized by the
public of China (PRC) were used to test a model of conditions of interdependency, mutuality, and rec
the processes (mediation and moderation) linking iprocity (cf.Hall, 1996). The inducement-contribu
high-performance human resource practices and or tion model (March & Simon, 1956) captures the
ganizational performance. Specifically, the objec interdependent nature of the employment relation
tives of this study were: (1) to develop a theoreti ship, whereby an employee's contributions satisfy
cally informed measure of high-performance the goals of an employer, while the employer's
human resource practices, (2) to examine the po inducements satisfy the goals of the employee. Mu
tential mediating influence of service-oriented or tuality suggests that the employer and the em
citizenship behavior (OCB) on the re ployee the same expectations
hold regarding their
ganizational
lationship between high-performance human respective goals (Dabos & Rousseau, 2004). The in
resource practices and organizational performance, ducements provided by the employer engender a
defined in terms of turnover and productivity, and sense of obligation on the part of the employee,
(3) to examine two contextual variables, labor mar who, to sustain the relationship, reciprocates with
ket conditions (unemployment rate) and business behaviors that promote the attainment of the goals
strategy, as moderators of the relationship between of the employer (Blau, 1964). Following Tsui and
service-oriented OCB and the organizational per her colleagues (1997), we consider high-perfor
formance indicators. We focused on these two in mance human resource
practices
as an
organiza
dicators of organizational performance because tion's strategy formanaging the employment rela
they were consistent with the relational view of the tionship. Because these practices signal a long-term
employment relationship (Tsui, Pearce, Porter, & investment in employees, they suggest a relational
Hite, 1995) that underpinned this study. view of the employment relationship that obligates
These objectives are schematically depicted in employees to reciprocate the organization's induce
Figure 1. Underpinned by a relational approach, ments with discretionary role behaviors or contri
FIGURE 1
Hypothesized Processes Linking High-Performance Human Resource
Practices to Organizational Performance
Productivity
Business Strategy

560 Academy ofManagement Journal June
butions that benefit the organization. Conse training, (2) appraisal and rewards, including per
quently, we expected service-oriented OCB to formance appraisal, compensation, and benefits,
mediate the relationship between high-perfor and (3) employment relations, including job design
mance human resource practices and organization and participation. According to Bamberger and Me
al performance. In keeping with recent research, we shoulam (2000: 67) and as shown in Table 1, an
treated service-oriented OCB as an organizational
integrated measure of human resource or high-per
level variable (Koys, 2001; Schneider, Hanges, formance human resource practices should assess
Smith, & Salvaggio, 2003) defining what is consid selective staffing, extensive skills training, broad
ered the standard mode of behavior in an organiza career paths, promotion from within, guaranteed
tion (Ehrhart, 2004).
job security, results-oriented appraisal, extensive
and open-ended rewards, broad job description,
THEORETICAL BACKGROUND flexible job assignment, and encouragement of par
ticipation. High-performance human resource prac
High-Performance Human Resource Practices
tices are therefore defined by their combination of
and Service-Oriented OCB
single practices that collectively affect organization
Bamberger and Meshoulam (2000) noted that re al performance.
search in strategic human resource management human resource
High-performance practices,
has adopted either a resource-based or a control such as provision of job security, extensive skills
based approach to the measurement of high-perfor from
training, promotion within, results-oriented
mance human resource The resource
practices.
appraisal, and broad career paths, signal an organ
based approach describes the extent to which a
ization's intention to establish a long-term ex
measure of practices taps the internal development
change relationship with its employees. Taking a
of employees, such as training and broad career
symbolic interaction perspective on the develop
path (Delery & Doty, 1996). In contrast, the control ment of climate, Schneider and Reichers
a (1983)
based approach describes the extent to which
noted that interactions among organization mem
measure of high-performance human resource
bers lead to shared perceptions of an organizational
practices to directing and monitoring
relates em
environment. High-performance human resource
ployee performance (Snell, 1992). Bamberger and
practices foster employees'
shared perceptions of a
Meshoulam (2000) pointed out that because neither
the domain of hu supportive organizational environment that moti
approach adequately captures
man resource practices, and they tend to covary, vates discretionary behaviors that contribute to or
they should be combined as orthogonal dimensions ganizational performance. These discretionary be

of a measure of high-performance human resource haviors have typically been conceptualized in
These two approaches are reflected in terms of OCB. Organ defined OCB as a class of
practices.
three main human resource subsystems: (1) people discretionary behaviors that contribute "to the
flow, including staffing, employee mobility, and maintenance and enhancement of the social and
TABLE 1
Configuration of High-Performance Human Resource Practices3
Dimension
Resource and
HR Subsystem Control-Based HR Practices Sample HR Practices
People flow Staffing Selective staffing

Training More extensive, general skills training
Broad career paths, promotion from within
Mobility
Job security Guarantee of job security
Appraisal and rewards Appraisal Long-term, results-oriented appraisal

Rewards Extensive, open-ended rewards
relation Jobdesign Broad job descriptions, flexible job assignments

Employment
Participation Encouragement of participation
Adapted from Bamberger and Meshoulam (2000: 67).

psychological context that supports task perfor work environment as being supportive. From a so
mance" (1997: 91). cial exchange perspective (Blau, 1964), the positive
Borman and Motowidlo observed that some benefits of a supportive work environment enjoyed
types of OCB "are probably more appropriate for by employees obligate them to reciprocate with
certain types of organizations than others. Service behaviors that benefit the organization. Thus, we
companies have special requirements on dimen expect high-performance human resource practices
sions related to dealing with customers
and repre to be related to service-oriented OCB. In a similar
senting the organization to outsiders" (1993: 90). vein, Leana and Van Buren (1999) argued that em
Accordingly, Bettencourt and Brown coined the ployment practices akin to high-performance hu
term "service-oriented OCB" to describe "discre man resource practices foster the development of
tionary behaviors of contact employees in servicing high-quality exchange relationships leading em
customers that extend beyond formal role require ployees to assume the role of good organizational
ments" (1997: 41). Bettencourt, Gwinner, and Meu agents. Indeed, they asserted that "if individuals
ter (2001) developed a typology of service-oriented believe that their efforts are an integral part of a
OCB with three dimensions: loyalty, participation, collective, they are more likely to spend time doing
and service delivery. Through loyalty service things the organization and/or its members find
oriented OCB, employees act as advocates to out useful (e.g., engaging in extra-role behavior or
siders not only of their organization's products and working cooperatively) and less time doing things
services, but also of its image. In participation ser benefiting the individual but not the organization
vice-oriented OCB, employees take individual ini (e.g., social loafing, self-promotion, or unwilling
tiative, especially in communications, to improve ness to cooperate)" (Leana & Van Buren, 1999: 548).
their own service delivery and that of their organ Supporting our contention is research evidence
ization and coworkers as well. This form of service linking human resource practices such as organiza
oriented OCB is fundamental to an organization's tional justice (Maxham & Netemeyer, 2003) and the
ability tomeet the changing needs of its customers. climate these practices engender (Schneider,
In service delivery service-oriented OCB, employ Ehrhart, Mayer, Saltz & Niles-Jolly, 2005) to cus
ees behave in a conscientious manner in activities tomer-directed OCB. Indeed, high-performance hu
surrounding service delivery to customers. man resource practices reflect Tsui et al.'s (1997)
Although OCBs are critical to the performance of mutual investment approach to the employee-or
all organizations (Podsakoff & MacKenzie, 1997), ganization relationship, which they reported to be
the nature of a service organization makes this class related to OCB.
of discretionary behaviors particularly important.
customers 1. High-performance human re
First, the intangibility of service makes Hypothesis
sensitive to cues indirectly related to service when source practices are positively related to ser
vice-oriented OCB.
they are evaluating its quality. Second, customers
participate in the service production process in that
they provide both information and labor inputs. The Mediating Influence of Service-Oriented
Lastly, the production and consumption of service
OCB on the High-Performance Human Resource
occur simultaneously (Bowen & Schneider, 1988;
Practices-Turnover Relationship
Schneider & Bowen, 1993). The defining attributes
of service suggest that "the customer experience is High-performance human resource practices
as important as, if not more important than, the have been reported to be related to turnover and/or
consumer good" (Bowen & Waldman, 1999: 164 employee retention (Arthur, 1994; Batt, 2002, Guth
165). This statement suggests a customer-driven rie, 2001; Huselid, 1995). However, the underlying
definition of employee performance in a service mechanisms are still speculative. For example, Batt
setting. Thus, it becomes important to understand (2002) argued that human resource incentives that
how a service sector organization creates an envi build trust, such as training, employment security,
ronment that motivates behaviors that go beyond and high relative pay, are likely to induce em
formal job requirements and are particularly func ployee attachment and commitment, thereby re
tional for achieving desirable customer outcomes. ducing turnover. We expected high-performance
As a strategy formanaging the employment rela human resource practices to be negatively related
tionship, high-performance human resource prac to turnover in view of social exchange theory, par
tices, such as provision of job security, extensive ticularly the norm of reciprocity (Gouldner, 1960),
skills training, and promotion from within, consti according to which one does not harm a partner
tute an organization's inducements that, by satisfy from whom one has received benefits, such as the
ing employee goals, foster the perception of the inducements and investments inherent in high-per

formance human resource practices. Since turnover ees to attend to the broad interests and needs of
(dysfunctional) can undermine organizational per their organization as well as to the requirements of
formance (Guthrie, 2001), we expect employees to their immediate jobs (Tsui et al., 1997: 1095) as
reciprocate an organization's inducements with re reciprocation for the inducements provided by the
duced turnover. Additionally, mutuality creates a organization (high-performance human resource
degree of trust and a willingness to engage in co practices). This argument suggests that employees
operative behavior (Malhotra & Murnighan, 2002), will not only use their skills to enhance core job
which precludes organizational exit. performance but will also assist others and suggest
In recent times, a relational perspective on turn ideas that improve organizational functioning. In
over has started to garner attention in the literature the context of this study, assisting others took the
(Chen, Hui, & Sego, 1998; Maertz & Griffeth, 2004; form of knowledge and information sharing to en
Mossholder, Settoon, & Henagan, 2005). Mossh hance productive potential. High-performance hu
older and coauthors (2005) reported interpersonal man resource practices (e.g., provision of employ
citizenship behavior to be negatively related to ment security, training, performance-related pay,
turnover. They reasoned that "interpersonal citi and broad career paths) constitute ways of formally
zenship behavior may presage turnover tendencies investing in the knowledge and skills of a work
and represent a relational manifestation of organi force. However, equally important are the tacit
zational attachment" (Mossholder et al., 2005: 614). knowledge and skills that customer contact em
Because high-performance human resource prac ployees may obtain from their role as boundary
tices suggest a long-term employment relationship, spanners, placed at the organization-customer in
employees in organizations with such practices are terface. This tacit or uncodified knowledge
more likely to be cooperative and assist others or, (Nonaka & Takeuchi, 1995) may include broad
in other words, engage in service-oriented OCB. As knowledge of customer types and strategies for
a standard mode of behavior in an organization, dealing with varying customer needs and situations
service-oriented OCB
denotes a quality of ties (Sujan, Sujan, & Bettman, 1988). Since tacit knowl
among coworkers that, by satisfying the relational edge is built through experience and therefore em
needs of employees, increases the psychological bedded skills, it is not easily transfer
in individual
cost of leaving a supportive work environment. able (Liebeskind, 1996). It is important therefore to
High levels of service-oriented OCB therefore sug understand the sort ofwork environment that facil
gest high-quality ties or a high level of attachment itates the transfer or sharing of tacit knowledge.
to the organization, leading to low turnover. Thus, The perception of service-oriented OCB as a stan
the relational aspects of a supportive work environ dard mode of behavior suggests a "shared percep
ment (fostered by high-performance human re tion that help seeking and giving is the norm?an
source practices), such as trust and cooperation, acceptable and legitimate way of doing things in a
which are manifested in service-oriented OCB, con particular work unit" (Bacharach, Bamberger, &
stitute an underlying mechanism for the docu Vashdi, 2005: 623). To the extent that "help seeking
mented high-performance human resource practices and giving is the norm" in a given organization or
turnover relationship. work unit, customer contact employees will be mo
tivated to share their insights and experiences (tacit
Hypothesis 2a. Service-oriented OCB mediates with
knowledge) coworkers, thereby enhancing
the relationship between high-performance hu their productive potential. In a study of high-tech
man resource and turnover.
practices
nology firms, Collins and Smith (2006) found that
knowledge exchange and combination were fos
tered by the relational aspects of an organization's
The Mediating Influence of Service-Oriented
social climate, such as trust and cooperation. The
OCB on the Relationship of High-Performance
Human Resource Practices and Productivity defining elements of a relational approach (interde
pendency, mutuality, and reciprocity) may also be
The widely documentedrelationship between said to characterize the relationship between
high-performance human resource practices and coworkers and to that extent will engender trust,
productivity has been explained in a variety of leading to the sharing of tacit knowledge and, ulti
ways. One explanation is that enhancement of em mately, to productivity improvements. Further
ployee skills and of the motivation to use them more, Evans and Davis suggested that "OCBs may
leads to productivity improvements (Applebaum et be especially helpful for facilitating the flow of tacit
al., 2000; Arthur, 1994; Guthrie, 2001; Huselid, knowledge" (2005: 770).
1995). The interdependency and mutuality of goals In support of our contention, OCB has been
that define the relational approach require employ shown to be related to such organizational perfor

manee indicators as unit performance (Podsakoff & native job opportunities and/or labor market con
MacKenzie, 1994), quantity and quality of produc ditions, they have been examined primarily as
tion (Podsakoff, Ahearne, & MacKenzie, 1997), and direct antecedents of turnover (see Hulin,
a variety of performance indicators, such as overall Roznowski, & Hachiya, 1985). However, there is
operating efficiency, quality of performance, reve also increasing recognition of themoderating influ
nue to full-time equivalents (Walz & Niehoff, 1996), ence of unemployment rate on turnover. For exam
and customer satisfaction (Schneider et al., 2005). ple, Maertz and Campion (1999) noted moderating
Although high-performance human resource prac effects of labor market conditions (e.g., unemploy
tices are related to productivity, we expect service ment rate) that went beyond their psychological
oriented OCB to mediate this relationship. As de impact on the organizational exit (turnover) deci
fining elements of a relational approach, mutuality sion process. As previously noted, high-perfor
of interest and reciprocity obligate employees to mance human resource practices facilitate service
contribute to organizational goal attainment by en oriented OCBs that, by creating a supportive work
gaging in cooperative behavior leading to service environment, increase the psychological cost of
oriented OCB, which in turn fosters a supportive leaving an organization and result in low turnover.
work environment. In keeping with a relational It is our contention that unemployment rate consti
view of knowledge sharing (Collins & Smith, 2006), tutes a boundary condition of a relational explana
a supportive work environment facilitates the ex tion of turnover. Under conditions of high unem
change or sharing of tacit knowledge, leading to ployment, job scarcity will constrain individuals
productivity improvements. from actually leaving an organization, regardless of
the psychological favorability or unfavorability of
Hypothesis 2b. Service-oriented OCB mediates their work environment. In contrast, in periods of
the relationship between high-performance hu low unemployment, when jobs are available, em
man resource practices and productivity. turnover is low in
ployee organizations that have
implemented high-performance human resource
Potential Moderators practices, per a relational perspective. This rela

tionship pertains because leaving a work environ
The preceding discussion is consistent with the ment that provides task-related and emotional sup
universalistic approach in the strategic human re port imposes a psychological cost. In contrast,
source management literature that implies a posi employees in firms that have not implemented
tive relationship between high-performance human high-performance human resource practices have
resource practices and organizational performance lower costs of leaving and, as a result, they are more
(Delery & Doty, 1996; Huselid, 1995). A second likely to take advantage of the favorable labor mar
approach, the contingency approach, focuses on ket conditions.
contextual boundary conditions for the high-per
Hypothesis 3a. Unemployment rate moderates
formance human resource practices-organizational
the service-oriented OCB-turnover relationship
performance relationship. Although the universal
in such a way that the relationship is stronger
istic approach has dominated research, the contin
when unemployment rates are low than when
gency approach has also attracted attention (Batt,
et al., 2005; Olian & Rynes, they are high.
2002; Datta 1984;
Sch?ler & Jackson, 1987). In keeping with this Business strategy. Podsakoff and MacKenzie
trend, we examined the influence of labor market suggested that "future research examining the rela
conditions and business strategy as moderators of tion between OCBs and organizational effective
the relationships between service-oriented OCB ness could benefit from examining the moderating
and the two organizational indicators effects of organizational characteristics . . . and task
performance
of turnover and productivity. and technological requirements" (1997: 145). An
Labor market conditions. Ever since March and organizational characteristic examined in this
Simon (1958) conceptualized organizational mem study was business strategy, forwhich "hotel star
bership in terms of a decision to perform and a rating" served as the proxy. In the hotel industry,
decision to participate, much individual-level re the number of stars a hotel receives in well-known
search on turnover has focused on the decision to rating systems denotes the quality of service and
participate. In this study, we defined the decision hospitality experienced by customers. "Higher star
to participate in terms of the perceived ease of rated" hotels offer exceptional service, and "lower
movement or availability of job alternatives. star-rated" hotels are patronized not for their qual
Although research on individual or psychologi ity of service but for their low cost (Hoque, 2000).
cal process theories of turnover now include alter As previously argued, service-oriented OCB facili

564 Academy Journal June
ofManagement
tates the exchange of tacit knowledge, which is guanxi) significantly facilitate company access
criticalto enhancing the productive potential of & Molina, 1999). A survey team
(Easterby-Smith
coworkers. To provide the exceptional service usu distributed survey packages to each participating
ally associated with higher star-rated hotels, their hotel. Each survey package contained two separate
employees need "customer-specific knowledge re administered to human resource
questionnaires
garding the demand characteristics of particular
managers and supervisors of frontline subordi
individuals or segments and need to know how to nates. A cover letter attached to each questionnaire
use that knowledge to negotiate customized offer
explained the objective of the survey and assured
ings" (Batt, 2002: 508). Since higher star-rated ho of the confidentiality of their re
respondents
tels differentiate themselves from lower star-rated
sponses and the voluntary nature of participation
hotels on the basis of exceptional service, the pro in the survey. For each hotel, the human resource
ductivity-enhancing implications of the tacit
that service-oriented OCB facilitates
manager questionnaire requested the HR managers
knowledge to provide data on human resource practices, turn
will be more relevant for higher star-rated hotels
over rate, and productivity. The supervisor ques
than lower star-rated hotels. This is because the
tionnaire was administered to immediate supervi
sharing of tacit knowledge and the resulting pro
sors of customer contact employees who
ductivity improvements are critical to the success
represented the core operations/departments of
ful implementation of a service-quality strategy and
the ability to charge higher prices. Although the each hotel. Supervisors rated the service-oriented
of tacit will also lead to OCB of their immediatesubordinates who partici
sharing knowledge produc
in lower star-rated hotels, it pated in the study. Completed questionnaires were
tivity improvements
will have little or no impact on the ability of hotels returned sealed in self-addressed envelopes to the
this strategy to charge higher prices and human resource manager of each participating
pursuing
therefore, the successful of a low hotel.
implementation
cost strategy. This is because customers patronize Of the 100 survey packages distributed, 86 were
these hotels not because of their service quality but returned. Specifically, we received questionnaires
rather because of their affordability or low prices. from 86 human resource managers and 430 super
visors from 86 hotels, representing response rates
Hypothesis 3b. Business strategy moderates
of 86 and 86 percent, respectively. After deleting
the service-oriented OCB-productivity rela
in such a that the is uncompleted questionnaires and records with un
tionship way relationship
stronger for hotels with a service-quality strat matched supervisor-subordinate dyads, we had
data from 81 human resource managers and 405
egy rather than a low-cost strategy.
supervisors. Table 2 presents salient characteristics
of the hotels that participated in the study.
METHODS
Sample and Procedures
Data for this study were obtained from hotels

located in 12 cities in an eastern coastal province of TABLE 2
the People's Republic of China. In 2004, the prov Major Characteristics of Sampled Hotelsa
ince achieved top ranking in terms of foreign direct
Variable Means s.d.
investment, accounting for 20 percent of China's
total. Not surprisingly, foreign direct investments 1. Age 11 12.46
are predominantly in the major sectors of the prov
ince's economy, such as electronics, telecommuni 2. Average number of employees 256 127.43
cations, metallurgy, textiles, and services, includ 3. Average number of rooms 200 108.02
ing tourism (http://english.jschina.com.cn). As a
tourist the studied 4. Ownership
major destination, province has typeb
Public 42 51.9
a thriving hotel industry, and many of the hotel
Not public 39 48.1
companies are joint ventures or totally foreign
owned. Table 2 profiles ownership type and other 5. Star ratingb
to the Low 42 51.9

characteristics of the sample. Access
(1-3)
major
High (4-5) 39 48.1
participating hotels was obtained through personal
contacts and a snowballing technique that utilized an = 81.
contacts of contacts. This approach is particularly b
Frequency is shown in the "Means" column, and percentage
useful in the PRC, where personal contacts (or is shown under "s.d."

Measures duced an eight-factor solution. With the exception

of job security [a = .55) and rewards [a = .50), the
The questionnaires were in Chinese but were
in alpha reliabilities for the subscales were equal to or
originally constructed English. We employed above the .70 criterion suggested by Hair et al.
conventional translation and back-translation
(1988). The relatively low reliabilities for the job
(Brislin, 1980), which was done by two Chinese and rewards subscales were on
security acceptable
bilingual academics independently. We then gave two grounds: (1) reliabilities of between .50 and .60
the English and Chinese versions of the question
are considered adequate in the early stages of scale
naires to yet another Chinese academic (a professor
development (Nunnally, 1978), and (2) similarly
of translation) to check whether the Chinese ver
low reliabilities have previously been reported (Bae
sion had achieved accuracy "decentered" from a
& Lawler, 2000). We also ran a confirmatory factor
literal English language translation. All multi-item
analysis (CFA) to test the factor structure of the 27
scales achieved an alpha reliability of at least .70
high-performance human resource practices repre
(Hair, Anderson, Tatham, & Black, 1998; Nunnally, sented by our items. As
shown in Table 1, the
1978). human resource scale
high-performance practices
High-performance HR practices. Following included eight dimensions: selective staffing, ex
Bamberger and Meshoulam (2000), we developed a
tensive training, internal mobility, employment se
27-item scale to measure integrated high-perfor
curity, broad job design, results-oriented appraisal,
mance human resource practices. After specifying
rewards, and participation. The CFA of our eight
the domains of HR practices, we generated items was unidentified.
factor model As a result, we
for each domain on the basis of an extensive liter the four items measuring the two latent
dropped
ature review and in-depth interviews with HR man reran the
factors?job security and rewards?and
agers of hotels in four cities in a northeastern prov CFA with the remaining 23 items, which represent
ince in China. Two measures reported in the six dimensions of high-performance human re
literature provided the initial pool of items: Bae source practices. This CFA (n = 206) had a model
and Lawler's (2000) measure, which was originally = = =
chi-square of 234.54 [df 113; CFI .92, TLI
developed by Snell and Dean (1992), and Delery = -
.90; RMSEA .07, and SRMR .06). From these
and Doty's (1996) measure. Interviews with the ho we concluded that the items were reason
results,
tel HR managers assured the relevance of the items, able measures of their respective human resource
and these managers suggested a few items for some dimensions. However, to maintain consistency
of the domains of HR practices. The Appendix with Bamberger and Meshoulam's (2000) use of
the texts of the items in our three main human resource subsystems
gives high-performance (see Table
human resource practices scale.
1) and the results of the EFA, we adopted the eight
Pilot study. To ascertain the validity of our mea factor model in the study. We used an additive
sure of human resource practices, we did a pilot index to reflect a single comprehensive measure of
study inwhich respondents were third- and fourth an HR system (Bae & Lawler, 2000; Batt, 2002;
year students majoring in hospitality and tourism Guthrie, 2001; Huselid, 1995). Becker and Huselid
at four universities in a major city of this eastern observed that the human resource man
strategic
coastal province in China. These students not only a preference "for a
agement literature demonstrates
had studied hotel management but also had in a set
unitary index that contains (though not always
terned or otherwise worked in the hotel industry. A the same set) of theoretically HRM
appropriate
cover letter attached to the questionnaires ex derived from work" (1998:
practices prior 63). They
plained the objective of the survey as investigation asserted that systems of human resource practices
of their perceptions of human resource practices in rather than single, isolated practices constitute the
the hotel industry and assured them itwas volun level of analysis as the former choice
appropriate
tary and confidential. Questionnaires were distrib that such a system is a strategic asset. A
suggests
uted to 240 students randomly selected by their score on this measure indicates a relatively
high
professors. Response options ranged from 1, intensive use of and investment in high-perfor
"strongly disagree," to 5, "strongly agree." Of the mance human resource practices. The scale's alpha
240 students, 206 returned usable questionnaires,
reliability is .76.
for a response rate of 85.5 percent. Service-oriented OCB. A 16-item service-ori
We conducted an exploratory factor analysis ented OCB scale developed et al.
by Bettencourt
(EFA) with principal axis factoring to uncover the (2001) was used to measure service-oriented OCB.
underlying factor structure of the high-performance Response options ranged from 1, "strongly dis
HR practices as assessed in the pilot study. As agree," to 5, "strongly agree." Sample items for the
shown in Table 3, the rotated factor matrix pro three dimensions of our service-oriented OCB scale

TABLE 3
Results of Factor Analysis of High-Performance Human Resource Practicesa
Items 1 2 345678
1. Participation
PARI .79
PAR2 .78
PAR3 .59
PAR4 .58
2.Mobility
MOBlb .72
M0B2b .67
MOB3b .61
M0B4 .43
M0B5 .36
3. Training
TRA1 .58
TRA2 .55
TRA3 .54
TRA4 .52
4. Staffing
STA1 .73
STA2 .56
STA3 .46
A4ST .37
5. Job description
DES1 .77
DES2 .68
DES3 .40
6. Appraisal
APP1 .48
APP2 .75
APP3 .34
7. Job security
SEC1 .85
SEC2 .47
8. Incentive reward
REW1 .62
REW2 .51
.86 .78 .79 .75 .70.70.55

.50
Alpha
3.28
Eigenvalue 3.12 3.01 2.04 1.99 1.59
1.77 1.50
Percentage of variance 12.16 11.56 11.16 7.57 7.38

6.56 5.89
5.56
a
The extraction method was principal axis factoring. The rotation method was varimax with Kaiser normalization. Rotation converged
in nine iterations. The cutoff point was .30. Numbers indicate the sequential position of an item in the scale in the questionnaire (see the
Appendix).
b
Reverse-coded.
are, "Says good things about the hotel to others" textual dimensions having to do with a societal
= culture and an economic
(loyalty, a .76), "Follows customer service guide institutional framework
lines with extreme care" (service delivery, a = .79), . . .
might pervasively condition the nature, mean
and "Makes constructive suggestions for service ing, and importance of various forms of discretion
a = .86). Following ary contributions to the effectiveness of organiza
improvement" (participation,
LePine, Erez, and Johnson (2002) and Koys (2001), tions" (Farh, Zhong, & Organ, 2004: 242), Farh,
we treated service-oriented OCB as global con Earley, and Lin (1997) developed and validated
struct. Working from the assumption that "the con indigenous Chinese measures of citizenship behav

iors. Although their results indicate both etic and Business strategy. We used hotel star rating as a
emic dimensions of OCBs, previous research in a proxy for business strategy. Star rating indicates the
Chinese context (Chen et al., 1998; Hui, Lam, & level of service a hotel offers and ranges from 1 to 5.
Law, 2000; Wang, Law, Hackett, Wang, & Chen, A lower star rating indicates that a hotel competes
2005) has used instruments developed in theWest. on the basis of low cost, and a higher star rating
The alpha reliability of our service-oriented OCB indicates that a hotel competes on the basis of
measure from Bettencourt et al. was .89. service quality. The hotels that participated in the
Organizational performance. Two indicators of study were all star rated.

firm performance used in this study were turnover Controls. Several firm characteristics served as
and productivity. As in previous research (Arthur, control variables. Hotel size was included as a con
trol variable because larger organizations may be
1994; Huselid, 1995), a single item, "What is your
more likely to use better developed ormore sophis
average annual rate of turnover?," was used tomea
sure "voluntary turnover." To ensure that the HR ticated HR practices (Jackson & Sch?ler, 1995) and
did not include discharges, may experience reduced turnover because of these
managers retirements,
and transfers in the measure of turnover, we spe HR practices (Horn & Griffeth, 1995). Further, size
in interviews and noted on the is assumed to have a direct effect on financial per
cifically explained
formance because of economies of scale and market
survey instrument that our focus was average an
nual quit rates?that is, the number of employees power (Shepherd, 1975). Hotel size was measured
as the natural log of the number of full-time em
who voluntarily left a hotel. We used the logarithm
of sales per employee (Huselid, 1995) to measure ployees. A second control variable was hotel age,
which was operationalized as the years from the
productivity. Huselid (1995) and others have con
founding date of the hotel in China. Hotel age has
tended that the primary advantages of this measure
been noted to be associated with the evolution or
are that it provides a single index that can be used
adoption of high-performance human resource
to compare a firm's productivity as well as to esti
practices and learning curve advantages in produc
mate the dollar value of returns for investments in
human re tivity (Guthrie, 2001). The final control variable
employees through high-performance was ownership, which past research has shown to
source practices. This measure of productivity re
be related to performance and HR policies and
flects employee efforts that are somewhat insulated
from variations in the capital and product markets practices. As shown in Table 2, hotel ownership
had two categories: public (state- and collectively
(Huselid, Jackson, & Sch?ler, 1997). Human re
owned) and not public (share-holding, foreign-in
source managers of the participating organizations vested, and privately owned). A dummy variable
were requested to provide the most recent esti =
was used to measure hotel ownership (1 "pub
mates of annual sales and total number of employ =
lic," 0 "not public").
ees in their hotels.
Unemployment rate. We collected data on un

from the China Information Bank Data Aggregation
employment
(www.chinainfobank.com) for the 12 cities where Since data on the high-performance human re
the hotels in our sample were located. Since the source practices and the organizational perfor
data bank did not provide direct information on mance indicators were assessed at the organiz
we worked out a formula to esti
unemployment, ational level, the service-oriented OCB data were
mate it.Unemployment rate for each city was esti to the
aggregated organizational level (Klein & Koz
mated as the number of registered unemployed in
lowski, 2000; Koys, 2001). This aggregation also
dividuals divided by the sum of the number of reflected our conceptualization of the construct as
registered unemployed individuals and the number an organizational characteristic. We calculated
of registered employed individuals. In other words,
within-group agreement statistics (rwg's) for the ser
unemployment rate was defined here as a ratio, vice-oriented OCB measure based on the grand
registered unemployed over registered total work mean The
(within-hotel dyad). organizations' rwg
force. We acknowledged that every unemployed values ranged from .84 to .99, with a mean of .96.
worker would not register in government offices. These values all exceeded .70, the lowest appropri
We also understood that cities might underestimate ate value for the aggregation of individual-level
their unemployment figures (our mean unemploy measures to the group/organizational level, sug
ment rate of only 1.46 percent, as shown in Table 2,
gesting within-group agreement was sufficient
confirms this view). The data we obtained were (James, Demaree, & Wolf, 1993; Klein & Kozlowski,
based on our best efforts and our best estimates of 2000). To further justify aggregation to the organi
the unemployment rates in these 12 cities. zational level, we calculated the values of the in

traclass correlation coefficients, ICC(l) and ICC(2). controlled unemployment rate at the city level in
ICC(l) provides an estimate of the extent to which our analysis. Model 1 in Table 5, the baseline
individual-level variability on a given measure is model, shows the effects of the controls and the
explained by higher-level units. The ICC(l) values moderators on productivity. Size of hotel was neg
were based on a one-way analysis of variance atively related to productivity in such a way that
(ANOVA) (Bliese, 2000). In this study, the group smaller hotels were more productive than bigger
effect, or the F- value, for the ANO VA was .11 (p < hotels. Hotel star rating was positively related to
.001). The ICC(2) provides an estimate of the reli productivity in that the higher the star rating of a
ability of group means. Using the Spearman-Brown hotel, the higher its productivity.
formula, we derived an ICC(2) of .97, which far Although the Pearson correlation between high
exceeded the value commonly considered the low performance human resource practices and pro
est acceptable, .70 (Klein & Kozlowski, 2000). ductivity was highly significant (r=.33,p<.01,
Taken together, the and ICC(2) values from Table 4), the regression coefficient for high
rwg, ICC(l),
justified the aggregation of the service-oriented performance practices in model 2 of Table 5 was
OCB data to the organizational level. = <
only marginally significant (? .12, p .10). Mul
ticollinearity and our relatively small sample size
RESULTS may have been the source of this marginality. In
contrast, service-oriented OCB was significantly re
=
Table 4 presents the descriptive statistics and lated to hotel productivity (? .17, p < .05,model
zero-order correlations among variables in the 3 in Table 5). When high-performance human re
study. As shown in that table, high-performance source practices and service-oriented OCB were
human resource practices were related to service both entered, inmodel 4, the effects of high-perfor
oriented OCB and to the performance indicators of mance human resource practices on productivity
turnover and productivity. Service-oriented OCB vanished, suggesting support for the hypothesized
was related to turnover, productivity, and mediating influence of service-oriented OCB on the
unemployment. relationship between high-performance human re
However, we that turnover would
reckoned be source practices and hotel productivity. Finally,
affected by the unemployment rate of the cities at model 5 examined the moderating influence of un
the time of data collection. Since the hotels were employment rate and star rating on the service
located in various cities around the eastern part of oriented OCB-productivity relationship. As shown
the PRC, our data set involved a nested structure of in that table, the effect of the interaction of unem
81 hotels nested within 12 cities. As a result, we ployment rate and service-oriented OCB on pro
used hierarchical linear modeling (HLM) to test our ductivity was not significant, but the effect of the
hypothesized relationship. interaction of star rating and service-oriented OCB
Table 5 shows the influence of high-performance was significant. The significant, positive interac
human resource practices and service-oriented tion suggests that the effect of service-oriented OCB
OCB on productivity. It should be noted that we on productivity was stronger for higher star-rated
TABLE 4
Means, Standard Deviations, and Zero-Order Correlations8
Variables Mean s.d.
1. Ownership 0.52 0.50

typeb
2. Star rating 3.48 0.87 -.06
3. Unemployment 1.46 0.51 .20+ .02
4. Age11.02 12.46 .14 .41** .08
5. Sizec 256.32 127.43 -.05 .55** .04 .09
6. High performance HR practices 3.72 0.32 -.08 .21 .20+ .07 .07
7. Aggregate service-oriented OCB 3.46 0.33 .02 .08 .40** .06 .06 .35**
8. Turnover 0.16 0.11 -.20 .06 .10 -.17 .13 .25* .30*
9. Productivity 0.95 0.21 -.15 .41** .17 .10 .12 .33** .33* -.09
a
n = 2,174; hotel n = 81 [n
= 78 for sales growth).
Employee
b = = 0.
"Public" 1, "not public"
c
Size on log value expected formeans and standard error.
+
p < .10
* <
p .05
< .01
**p

TABLE 5
Results of Cross-Level Analysis of Effects of High-Performance
HR Practices, OCB, and Unemployment on Productivity8
Productivity OCB
Variable Model 1 Model 2 Model 3 Model 4 Model 5 Model 6
Intercept 0.93**
y00 0.49 0.35 0.17 1.46 2.08**
Unemployment y01 0.18 0.16 0.10 0.10 0.22 0.41*
Ownership type y10 -0.07 -0.06 -0.06 -0.06 -0.06 0.01

Star rating 0.15**
y20 0.13** 0.15** 0.14** -0.23 -0.06
Agey30 0.00+ 0.00 0.00+ 0.00 0.00 -0.01

Sizec y40 -0.23+ -0.20 -0.23* -0.21+ -0.21+ 0.13
High-performance HR practices 0.12+

y50 0.07 0.07 0.34**
Aggregate service-oriented OCB 0.17*

y60 0.15* -0.21
X OCB y61 -0.03
Unemployment
OCB X star rating y70 0.11b
a-2 0.03 0.03 0.03 0.03 0.03 0.08

T"nn 0.00f 0.00+ 0.00 0.00 0.09 0.01
0.00
a =
1: Productivity
Level ?0 + ?1 X ownership type + ?2 X star rating + ?3 X age + ?4 X size + ?5 X high-performance HR practices
+
? 6 X OCB + ?7 X star rating X OCB + r.

Level 2: ?0 = y00 + y01 X unemployment + u00.
=
?k ykofork= 1,2,3,4,5,7.
=
?e 7eo + 7ei x unemployment + u66.
b
This parameter is significant at the .05 level if one uses the robust standard error estimates.
c
Logarithm.
+
p < .10
* <
p .05
p < .01
hotels than for lower star-rated hotels, confirming dieted, this relationship is stronger for higher than
Hypothesis 3b. Figure 2 graphically depicts the re for lower star-rated hotels.
sults of the interaction. Although service-oriented Table 6 shows the effects of high-performance
OCB is generally related to productivity, as pre human resource practices, service-oriented OCB,
and unemployment rate on the employee turnover
of the hotels. Models 6 to 10 show results of a set of
FIGURE 2 tests with turnover rate of the hotels as
parallel
Effects of Interaction between OCB and variable. Taken together, models 7-10
dependent
Business Strategy on Productivity Baron and
depict Kenny's (1986) recommended
procedures for testing mediation. Comparing
Productivity 7 to model
model 9, we found that the effect of
High star rating human resource on
high-performance practices
turnover dropped from -.10 (p < .05) to -.07 {p <
.10), indicating support for the mediating influence
of service-oriented OCB on the be
relationship
tween high-performance human resource practices
and turnover.
Low star rating
To test Hypothesis 3a, we examined the moder
ating influences of unemployment rate and star
rating on the service-oriented OCB-turnover rela
tionship. As shown inmodel 10 in Table 6, unem
ployment rate moderated the service-oriented
OCB-turnover relationship. Figure 3 depicts the
plot of the interaction and shows that, contrary to
-
OCB our prediction, under conditions of low
unemploy

TABLE 6
Results of Cross-Level Analysis of High-Performance HR Practices, OCB, and Unemployment on
Turnover0
Turnover OCB
Variable Model 7 Model 8 Model 9 Model 10 Model 11 Model 12
Intercept 7oo 0.25+ 0.62** 0.66** 0.83** 1.38* 2.08**
Unemployment 7oi 0.07 0.10 0.13 0.14 0.55* 0.41*
Ownership type 7io -0.02 -0.03 -0.03 -0.03 -0.03* 0.01

Star rating 720 -0.02 0.01 -0.02 -0.01 -0.18 -0.06
Age 730 -0.01 -0.01 -0.01 -0.01 -0.00 -0.01

Size 740 -0.01 -0.05 -0.01 -0.03 -0.04 0.13
High-performance HR practices 750 -0.10* -0.07t -0.07* 0.34**
Aggregate service-oriented OCB 760 -0.12** -0.10* -0.25*

X OCB 761 -0.12*
Unemployment
OCB X star rating 770 0.05+
o2 0.01 0.01 0.01 0.01 0.01 0.08
Too 0.00* 0.00* 0.00* 0.00** 0.00 0.01

0.00
a = X age + ?4 X size + j35X high-performance

Level 1: Productivity ?0 + ?1 X ownership type + ?2 X star rating + ?3 HR practices
6 X OCB + X star x OCB + r.
?7 rating
Level 2: ?0 = y00 + y01 X unemployment + u00
+
p < .10
* <
p .01
< .05
**p
FIGURE 3 DISCUSSION AND CONCLUSION

Effectsof Interaction between OCB and
Supporting findings in the extant literature, the
Unemployment Rate on Turnover
findings of this study revealed high-performance
human resource practices to be related to the
Turnover indicators of turn
organizational performance
over and productivity (Arthur, 1994; Bae &
Lawler, 2000; Huselid, 1995; Guthrie, 2000),
demonstrating the generalizability of the organi
Low zational performance effects of high-performance
human resource practices to the service sector
unemployment
(Bartel, 2004; Batt, 2002). To probe the black box
of this much-documented relationship, and
drawing on a relational view of the employment
High relationship, this study examined the patterns of
unemployment relationships (high-performance human resource
- OCB conducive to organizational
practices) perfor
mance and the behaviors (service-oriented OCB)
that create and sustain these relationships (Evans
& Davis, 2005; Tsui et al., 1997). The findings
revealed a partially mediating role for service
ment OCB was weakly
service-oriented related to
oriented OCB in the relationship between
turnover; however, it (service-oriented OCB) was high
related to turnover under conditions of performance human resource practices and the
strongly
In contrast, organizational performance indicators of turn
high unemployment (Hypothesis 3a).
the effect of the interaction of star rating and ser over and productivity. Furthermore, and consis
vice-orientedOCB on turnover was not significant, tently with our predictions, unemployment rate
OCB moderated the relationship of service-oriented
suggesting that the effect of service-oriented
on turnover was the same of the star OCB and turnover, and hotel star rating moder
regardless
a
rating of hotel. ated the service-oriented OCB-productivity rela

tionship. Notsupporting our prediction, service ees when they perceive diminished prospects of
oriented OCB was weakly related to turnover obtaining jobs with better terms of employment in
when unemployment was low rather than high; an unfavorable labor market. On the other hand, for
however, again supporting our prediction, ser cities with low unemployment rates, service
vice-oriented OCB was more strongly related to oriented OCB was weakly related to turnover. It
productivity in hotels pursuing a service-quality appears relational ties to an organization as mani
strategy (higher star-rated) than a low-cost strat fested in service-oriented OCB do not constrain
egy (lower star-rated). employees from taking advantage of favorable labor
We argued that the implementation of high-per market conditions to seek better terms of employ
formance human resource practices constitutes an ment elsewhere. Although this unexpected finding
organization's strategy formanaging the employee highlights a limit of the relational approach to turn
organization through fostering a high
relationship over (Mossholder et al., 2005), it is
explicable in the
quality employment relationship. A shared percep context of China. The economic reforms in that
tion of an organization's initiation of a high-quality country have made Chinese employees economi
relationship among employees engenders a rela cally oriented (Chen, 1995), preferring improved
tional view of the employment relationship defined material circumstances over relational ties to an
by interdependency, mutuality, and reciprocity; organization. Future research may need to empiri
this view obligates them to reciprocate with ser cally examine these intuitively plausible explana
vice-oriented OCB. High-performance human re tions. Support for Hypothesis 3b suggests that al
source practices promote employee goal attain though the of tacit fostered by a
sharing knowledge
ment, and to
reciprocate the organization's work environment where service-oriented OCB is
inducements, employees engage in cooperative be considered a standard mode of behavior may lead
havior, such as service-oriented OCB, that under to productivity improvements, this is particularly
lines themutuality inherent among interdependent the case in hotels pursuing a service-quality strat
parties. As a standard mode of behavior in an or egy rather than a low-cost strategy. This enhance
ganization, service-oriented OCB promotes a sup ment of the relationship occurs because higher star
portive work environment where employees are rated hotels differentiate themselves on their
motivated to share tacit knowledge, which leads to ability to provide superior service and charge
enhanced productivity. Furthermore, this work en higher prices. The sharing of tacit knowledge and
vironment may also satisfy the relational needs of the resulting productivity improvements are thus
employees and increase the psychological cost of critical to the effectiveness of this strategy. In con
leaving; low turnover is a consequence. These find trast, lower star-rated hotels differentiate them
ings are consistent with the emergent relational selves on their low cost and no-frills service, so
on knowledge &
perspective sharing (Collins productivity improvements may not translate into
Smith, 2006) and turnover (Maertz & Griffeth, 2004; ability to charge higher prices and will therefore
Mossholder et al., 2005). not impact the effective implementation of this
Although a universal or best-practice strategy.
approach
has dominated research on the organizational per The findings must be interpreted against a back
formance effects of high-performance human re drop of the limitations of the study. First, the cross
source practices, there is recognition that this rela sectional research design limits the extent towhich
tionship may be contingent on an organization's cause-effect relations can be inferred from our find
contextual or environmental conditions. Our find ings. It is intuitively plausible that organizations
ings pertaining to themoderating influence of labor that experience low turnover and have high pro
market conditions (unemployment rate) on the ser ductivity might be better placed to invest in high
vice-oriented OCB-turnover relationship and the performance human resource
practices. The cross
moderating influence of business strategy (hotel sectional design implies that we measured human
star rating) on the service-oriented OCB-productiv resource practices after the performance
period re
ity relationship support the contingency approach sulting in the prediction of past performance
(Batt, 2002; Datta et al., 2005). However, although (Wright et al., 2005). Furthermore, the relationship
unemployment rate moderated the relationship of between OCB and productivity has been shown to
service-oriented OCB and turnover, the results be reciprocal. In data obtained from a longitudinal
were contrary to our prediction
(Hypothesis 3a). study, Schneider and colleagues (2003) found that
Surprisingly, service-oriented OCB was strongly re productive efficiency was indirectly related to sat
lated to turnover when unemployment was high. isfaction with pay, which stimulated OCB, leading
Perhaps the relational ties that service-oriented to productive efficiency. Future research that em
OCB fosters assume greater importance for employ ploys a longitudinal research design would be bet

ter suited to addressing the causal status of the highlight the importance of relationships and asso
variables examined in this study. Second, obtain ciated behaviors as a source of competitive advan
ing data from a single industry in a single geo tage (Uhl-Bien, Graen, & Scandura, 2000). Second,
graphic area limits the generalizability of the find this study developed a theoretically driven,
ings to other industries and geographic areas. In grounded, and integrative measure of high-perfor
view of the uneven regional economic develop mance human resource practices. Our measure was
ment in China, previous research categorized cities informed by resource- and control-based ap
in terms of stage of economic development and proaches (Bamberger & Meshoulam, 2000) covering
controlled for location effect (Law, Tse, & Zhou, eight HR practices domains: selective staffing, ex
2003). However, the limitation of single-industry tensive training, internal mobility, employment se
research is mitigated by the influence of industry curity, broad job design, results-oriented appraisal,
context on relationships of interest. To enhance rewards, and participation. If validated, our mea
external validity, future research should obtain sure of high-performance human resource practices
data from different industries and geographic re should speak to Delaney and Huselid's concern
gions. Third, although a stream of research in a that the strategic human resource management lit
Chinese context (Hui et al., 2000; Wang et al., 2005) erature "is distinguished by the fact that virtually
has used OCB measures developed in the West, no two studies measure HRM practices in the same
Farh and his colleagues (Farh et al, 1997, 2004) way" (1996: 967) and the absence of a theoretically
have demonstrated that OCB has both emic and etic informed measure of high-performance human re
dimensions. The service-oriented OCB used in this source practices (Delery, 1998).
study was measured with an instrument developed Third, the findings confirm themoderating influ
in the West that may not fully capture the etic ence of labor market conditions (unemployment
dimension of this class of behaviors in a Chinese rate) and business strategy (hotel star rating) on the
context. Future research should develop an indig relationship service-oriented OCB and the
between
enous Chinese measure of service-oriented behav performance of turnover and perfor
indicators
ior. Lastly, we the influence of high mance. Coupled with the demonstrated influence
explained
performance human resource practices (an of high-performance human resource practices on
initiation of a high-quality relation the performance indicators, our findings provide
organization's
ship with employees) in terms of a relational view support for both universal and contingency ap
of the employment we bor in strategic human resource management
relationship. Although proaches
rowed from the climate literature to suggest that research. A final contribution is that our findings
when it becomes a shared perspective, a relational highlight the generalizability
of the performance
view of the employment relationship leads to ser effects of high-performance human resource prac
vice-oriented OCB as standard mode of behavior in tices to a non-Western cultural context. China's
an organization, we did not collect data on rela economic reforms and the participation of foreign
tional climate to empirically test our proposition companies in the Chinese economy have led to the
(cf. Collins & Smith, 2006; Gelade & Ivery, 2003; popularization of Western-style human resource
Schneider et al., 2005). Future research should ob practices such as employment contracts, perfor
tain data on relational climate and empirically ex mance management systems, and high-perfor
amine its role in the processes linking high-perfor mance human resource practices (Wang, Tsui,
mance human resource practices to organizational Zhang, & Ma, 2003; Warner, 1995). This is particu
larly the case in the economically developed prov
performance.
These limitations notwithstanding, the findings inces, such as the one in which the participating
of this study contribute to the strategic human re hotels were located. Our findings suggest that as
source management literature by partially illumi Chinese employees become used to high-perfor
nating the influence of high-performance human mance human resource
practices
as an
organiza
resource practices on organizational performance. tional strategy formanaging the employment rela
research has posited employee tionship, these practices will foster the same
Although previous
discretionary effort as a mediator (Appelbaum attitudinal and behavioral reactions (Law et al.,
et al., 2000), this study is arguably among the ear 2003; Wang et al., 2003) as have been reported in
liest to examine the potential mediating role of the extant, predominantly Western literature. Ad
(service-oriented) OCB in the relationship between ditionally, our findings indicate that these behavioral
high-performance human resource practices and or reactions partially underpin thewidely demonstrated
human resource
ganizational performance. Support for the hypoth high-performance practices
esized mediating role for (service-oriented) OCB organizational performance relationship.
lends credence to recent theoretical arguments that From a practical perspective, the findings suggest

that adoption of a systems or configurational view tions among white and African-American peers.
of human resources pays off. However, the results Academy of Management Journal, 48: 619-644.
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Employment Security
Warner, M. 1995. The of human resources
management
in Chinese London: St. Martin's Press. 14. Employees in this job can be expected to staywith
industry.
this organization for as long as theywish. (SECl)
S. A. 2002. work systems and
Way, High performance
15. Job security is almost guaranteed to employees in
intermediate indicators of firm performance within
this job. (SEC2)
the US small business sector. Journal ofManage
ment, 28: 765-785.
Clear JobDescription
P. M., Gardner, T. M., L. M., & Allen,
Wright, Moynihan,
M. R. 2005. The relationship between HR practices 16. The duties in this job are clearly defined. (DESl)
and firm performance: Examining causal order. Per 17. This job has an up-to-date description. (DES2)
sonnel Psychology, 58: 409-446. 18. The job description for a position accurately de
scribes all of the duties performed by individual
APPENDIX employees. (DES3)
in the High-Performance Human Resource Results-Oriented Appraisal

Items
Practices Scalea
19. Performance is more often measured with objec
Below are items that organizations may use in the tive quantifiable results. (APPl)
of their For each item, indicate 20. Performance are based on
management employees. appraisals objective
the extent of your agreement
or
disagreement
as a de quantifiable results. (APP2)
scription of the practices employed by your hotel to 21. Employee appraisals emphasize long term and
manage customer-contact or front-line
employees. group-based achievement. (APP3)

Incentive Reward
A
22. Individuals in this job receive bonuses based on

Li-Yun Sun is an assistant of management in
the profit of the organization. (REWl) professor
the Faculty of Management and Administration at the
23. Close tie or matching of pay to individual/group
Macau University of Science and Technology. He ob
performance. (REW2) tained his Ph.D. inmanagement fromHong Kong Baptist
His areas of research interest include strate
University.
Participation human resource
gic management, counterproductive
behaviors, and Chinese
24. Employees in this job are often asked by their workplace organizational justice,
supervisor to participate in decisions. (PARI)

management.
25. Individuals in this job are allowed tomake deci Samuel Aryee is a professor of or
([email protected])
sions. (PAR2) ganizational behavior and human resource management
26. Employees are provided the opportunity to sug in the Aston Business School at Aston University. He
gest improvements in the way things are done. obtained his Ph.D. in organizational sociology fromMc
(PAR3) Master University. His areas of research interest include
27. open communications with em employee-organization relationships, organizational jus
Supervisors keep
ployees in this job. (PAR3) tice, counterproductive workplace behaviors, leadership,
and work-family interfaces. He pursues research in these
areas in cross-cultural contexts.
a
The stem and the items are given verbatim from the Kenneth S. Law is a professor of management in the
study. The code names in parentheses are those listed in Faculty of Business Administration at the Chinese Uni
Table 3. versity of Hong Kong. He obtained his Ph.D. from the
University of Iowa. His areas of research interest include
emotional re
leadership, intelligence, performance,
search methodology, and HRM/OB issues in Chinese
management.


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