This paper attempts to shed light on some of the unstated assumptions of the varieties of capitalism framework by comparing it with its 'close relative'that is, transaction cost economics-as well as neoclassical economics. These comparisons show that, within the varieties of capitalism approach, actors' strategic preferences are assumed to be endogenous to the institutional environment in which they operate. Moreover, important institutions are assumed to be uniformly spread across firms within a national economy. This latter presupposition ultimately makes the varieties of capitalism framework a structuralist approach. Despite its claims to the contrary that it is an actor-centred approach, the varieties of firms paradigm treats the varieties of firms as irrelevant. It is this variety that is lacking in the approach, and that needs to be addressed in any empirical assessments of it.

Purpose: Despite a growing literature on human resource management in emerging economies, evidence from Pakistan is limited. There is scant information on both the HR practices that indigenous workplaces adopt and their associations with HR-related outcomes.This paper fills that gap by examining whether universalistic assumptions about the applicability of 'high performance' HR practices are valid in Pakistan, a country with religious values and organizational traditions that differ to those in the West.Design/methodology/approach: This study draws on the, to date, most comprehensive survey of indigenous establishments in Pakistan. The data were analysed using logistic regressions.Findings: Workplaces, in general, adopt several 'high performance' HR practices, such as extensive training, career breaks, rigorous pre-employment candidate assessment, and the sharing of strategic information with employees. Attitude surveys and the provision of training in a variety of jobs to non-managerial employees are consistently associated with better HR-related outcomes (absenteeism, quit rates, and labour productivity). Overall, the paper finds some limited support for the applicability and efficacy of high-performance HRM practices in Pakistan. Such practices conform to Islamic principles. The results also indicate, however, that cultural traits play a role in how those practices are implemented. Existing research either focuses on a relatively small number of firms, assesses HR in MNC subsidiaries, or examines a limited range of HR practices. Understanding the HR practices that are (and are not) adopted and their associations with performance outcomes will not just enhance our knowledge of HR in emerging economies, but also provide insights into how establishment performance and economic growth rates might be improved.

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Purpose Drawing on data from a unique, large-scale survey, the purpose of this paper is to examine the links between e-HRM and perceived labour productivity both directly and through the mediating role of HR service quality amongst commercial-bank workplaces in Pakistan, many of which have introduced e-HRM. Design/methodology/approach The authors use partial least squares structural equation modelling to examine the direct links between e-HRM and productivity as well as the mediated links between e-HRM, perceived HR service quality and productivity. Findings The authors show that e-HRM practices have a statistically significant, positive effect on managers’ perceptions of labour productivity. The authors also reveal that e-HRM practices influence the quality of HR service, and that the quality of HR services fully mediates the relationship between e-HRM practices and managers’ perceptions of labour productivity. Practical implications The results highlight the importance of designing and implementing e-HRM systems so that they support organisation workflow and enable workers to carry out a range of HR and non-HR activities more efficiently. In particular, this study suggests that managers should focus on how e-HRM impacts on HR service quality in a holistic way, as this is the “route” via which e-HRM can improve labour productivity. Originality/value Existing research has demonstrated a link between e-HRM and the quality of HR services; however, these studies downplay the potential impact of e-HRM on labour productivity, a key organisational outcome and one that e-HRM aims to improve. This study contributes to the HRM literature by identifying how e-HRM can improve labour productivity by enhancing the perceived HR service quality. This study, therefore, provides the basis for future theory developments in this area.