1. ¹Department of Management, Hong Kong Baptist University, Hong Kong, China
2. ²Department of Management, Chinese University of Hong Kong, Hong Kong, China

Correspondence: L-Q Wei, Department of Management, Hong Kong Baptist University, Hong Kong, China. Tel: +852 3411 7566; Fax: +852 3411 5583; E-mail: weiliqun@hkbu.edu.hk

Received 22 August 2005; Revised 4 May 2007; Accepted 17 July 2007; Published online 22 May 2008.

Abstract

This study examines market orientation as the antecedent to strategic human resource management (SHRM), and the related effects on firm performance in an emerging economy context. It is suggested that the relationship between SHRM and firm performance is moderated by ownership type and autonomy in staffing of these firms. Empirical results from a sample of Chinese firms from various industries and regions reveal that SHRM mediates the relationship between market orientation and firm performance. It is also found that the effect of SHRM on firm performance is stronger for firms with a higher degree of autonomy in staffing, and weaker for private firms. Other types of ownership (state or foreign) have no effect on this relationship.