Vertical fit of HR practices and organizational culture: a case of a large-sized Korean conglomerate

Abstract

Purpose The purpose of this paper is to contribute to the human resources (HR) literature by using exploratory network analysis (ENA), a data-driven technique. This technique was employed to discover how the perceived effectiveness of HR practices interrelate with employee perceptions on organizational cultural factors to enhance organizational commitment. Design/methodology/approach The authors used data from 1,459 employees of a large South Korean conglomerate and studied how individual HR practices could be enhanced by specific organizational cultural factors. The data were analyzed using ENA, which is an inductive approach. Findings The authors found that organizational commitment is associated with the positive perceptions of employees on the effectiveness of HR practices, such as performance appraisal, training and development, and compensation. Results show that when both HR practices and organizational cultural factors are considered, they appear to influence organizational commitment independently. Research limitations/implications Data were collected from a large conglomerate. The authors were limited by the use of the scales developed by a consulting firm. Therefore, readers should be cautious about the generalizability of the findings. Originality/value The application of a data-driven technique (ENA) highlights the potentially fertile methodological grounds for HR research. Literature on strategic HR management may benefit from inductive approaches, wherein data serve as primary foundation for the design and development of new theories.