UNDERSTANDING THE HRM - PERFORMANCE LINK IN PROFESSIONAL ERVICE FIRMS: A MULTI-LEVEL PERSPECTIVE

This is a theoretical paper which aims to explore how and why the use of high performance works systems (HPWS) improves firm performance in professional service firms (PSFs). Extensive literature review indicates three research gaps as 1) the lack of focus on the professional service context in HRM research; 2) the lack of clarity on why this HR practice-performance link exists, the so called "black box" problem; and 3) the relatively undeveloped research of HRM in PSFs research. We propose a multi-level approach (organization, team and individual) and a longitudinal research design to close these research gaps. This paper contributes to better understanding how HPWS are operated in PSFs and the mechanisms through which HPWS work for organizational performance.