Human resource investments and firm performance: which comes first?
DOI:
https://doi.org/10.51302/rtss.2012.3445Keywords:
human resource management, commitment to employees, organizational performance, longitudinal analysis and structural equation modellingAbstract
This study presents empirical evidence about the «causal» relationship between Organizational Commitment to Employees, OCE (measured by an aggregated index of three indicators: compensation per employee, training expenditures per employee and the proportion of workers without temporary contracts) and two organizational performance measures (Labour Productivity and ROA) using longitudinal research based on a panel of 1,190 Spanish industrial firms and four observation periods (2005-2008). Our results confirm both the traditional view in SHRM, namely, that OCE causes organizational performance, and the reverse causation hypothesis which holds that organizational performance is the cause of OCE.
Supporting Agencies
Este trabajo ha sido apoyado por el Ministerio de Ciencia e Innovación (MICINN) (Referencias ECO2008-01674 y ECO2011-25809)
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