A theory-based analysis of null causality between HRM practices and outcomes: Evidence from four-wave longitudinal data

Chidi Ogbonnaya, Kevin Daniels, Jake Messersmith, Yasin Rofcanin

Research output: Contribution to journalArticlepeer-review

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Abstract

The last three decades have seen a growing interest in understanding the influence of human resource management (HRM) practices on employee job satisfaction and organizational performance. While the results have been generally positive, most studies have utilized cross-sectional research designs, which limit causal inferences. Recently, several studies have used longitudinal data but have not consistently found significant causal links between HRM practices and outcomes after controlling for past outcomes. This points to a tension in the literature that merits further investigation. Drawing on general systems theory (GST), we explore this issue by proposing and testing a set of null causal relationships involving HRM practices, organizational performance (i.e., patient satisfaction), and job satisfaction. We show that average scores on HRM practices and outcomes remain relatively stable at the organizational level over time, such that any observed within-organization change is likely negligible or non-significant. Using four-wave longitudinal data (with two, four, and six-year time lags) from the public healthcare sector, we argue that the causal links between HRM practices and outcomes are indeed sensitive to the forces of dynamic equilibrium operating within a highly institutionalized context. We use GST to highlight the self-sustaining nature of HRM systems and discuss the ramifications of this stability for strategic HRM research and practice.

Original languageEnglish
Pages (from-to)1448-1484
Number of pages37
JournalJournal of Management Studies
Volume60
Issue number6
Early online date14 Nov 2022
DOIs
Publication statusPublished - 30 Sept 2023

Bibliographical note

ESRC ES/N003586/1

Funding Information:
This work is part of the Work, Learning and Wellbeing programme of the What Works Wellbeing Centre ( www.whatworkswellbeing.org ). We acknowledge the support of our funding partners, administered through Economic and Social Research Council Grant ES/N003586/1. The data used in this paper are publicly available to download from NHS websites.

Funding

This work is part of the Work, Learning and Wellbeing programme of the What Works Wellbeing Centre ( www.whatworkswellbeing.org ). We acknowledge the support of our funding partners, administered through Economic and Social Research Council Grant ES/N003586/1. The data used in this paper are publicly available to download from NHS websites. This work is part of the Work, Learning and Wellbeing programme of the What Works Wellbeing Centre (www.whatworkswellbeing.org). We acknowledge the support of our funding partners, administered through Economic and Social Research Council Grant ES/N003586/1. The data used in this paper are publicly available to download from NHS websites.

FundersFunder number
What Works Wellbeing Centre
Economic and Social Research CouncilES/N003586/1

Keywords

  • HRM practices
  • job satisfaction
  • lag effects
  • null causality
  • organizational performance
  • reverse causality

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management
  • Management of Technology and Innovation

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