Organizational performance as dependent variable in strategic human resource management literature – a journey so far

Abstract

PurposeOrganizational performance (OP) is one of the most important constructs in management research and all functions are evaluated by their contribution toward OP. This paper evaluates the current state of the research on OP in strategic human resource management (SHRM) literature. The study intends to generate new ideas for ongoing research in the field, facilitate the strategic alignment of HR operations and provide practical guidance on adopting OP measurement metrics for evidence-based decision-making at both organizational and individual levels. Consequently, a dual-method systematic review methodology was employed to achieve the stated objectives. This research underpins its theoretical argument on a resource-based view.Design/methodology/approachThis research paper follows a systematic review of 127 empirical studies conducted in the last three decades, in which, the selection of OP as a dependent variable is evaluated. This systematic review followed the integrated and systemic review of literature combining Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) and bibliometric analysis. The tools used for bibliometric analysis are Biblioshiny package from R software and VOSviewer software.FindingsOut of selected 127 empirical studies, none of the studies provide a comprehensive measuring framework. As a result, the current literature review provides an expanded list of OP indicators and a measurement framework with 10 different performance perspectives based on Business Process Measurement literature.Research limitations/implicationsPerformance is a complex concept that requires understanding its relationships and the impact of context and measures. Objective measures alone may not capture this, so research is needed to determine the best combinations of subjective and objective measures. This systematic literature review identifies gaps in existing literature on performance measurement indicators in management and provides an exhaustive list of 161 indicators. These indicators can be used by practitioners and researchers to choose appropriate ones based on their needs. Future research should focus on case studies to validate results and enhance performance measurement systems in SHRM research.Practical implicationsThe study emphasizes the importance of examining the multidimensionality of OP, which is linked to stakeholders affected by performance measures, the assessment environment, and the time frame when gauging performance.Originality/valueThis review analyzed the intellectual structure of SHRM and OP research field and identified various research fronts. This study added to the literature a measurement framework with 10 perspectives in which 161 performance indicators were categorized.