Mediation of human resource management in the linkage between performance and culture in an emerging economy

Abstract

The linkages between corporate culture, corporate performance, and human resource management (HRM) practice have been broadly investigated, but, none of the previous studieshave analyzeda mediation mechanism in the relevant research models. This article aimed to analyze the complicated linkages among corporate culture, performance, and HRM practice. Especially, it aimed to underline the mediation of HRM in the research model. The research data were collected in Vietnam as one of the quickly developing countries, receiving a humble amount of research on that issue. Multiple regression analyses were employed to scrutinize the causal correlation from corporate culture to performance, while the mediating procedures were applied to investigate the mediating mechanism. The research findings reveal that clan, adhocracy, and market cultures likely improve corporate performance, whereas hierarchy culture negatively influences corporate performance. Furthermore, HRM practice was evidenced to partially mediate the effects of clan, market, and hierarchy culture on performance. Nevertheless, it fully mediates the influence of adhocracy culture on performance. This research is one of the first to link HRM practice to the relationship between corporate culture and performance, and then explore HRM mediation. The empirical results could help researchers and business managers in developing economies more deeply understand the complicated links among corporate culture, performance in business, and the mediation of HRM practice to make better decisions on corporate culture and HRM for their enterprises. Ultimately, they can gain better corporate performance.