Human resource management and organization performance: From new institutionalism perspective

The relationship between human resource management (HRM) and organization performance has been a hotly debated topic over the last decade. To fully understand the relationship between HRM and performance in different contexts, we are in need of additional theory. New institutionalism is a case in point. Research emerging from different fields of organizational analysis has linked both new institutionalism and HRM to organizational performance. The findings of the paper suggest that differences in institutional settings (between for example countries or branches of industry) affect the shaping of HRM. These findings lead to a number of conclusions and implications for both theorists and practitioners.