Unlocking the black box of the HRM–OP relationship: an empirical study in the telecommunications sector in Kuwait
Creators: name: Almutawa, Zeyad
Publisher: name: RMIT University
Year: 2024
Subjects: classificationCode: 350503
subject: Human resources management
classificationCode: 350710
subject: Organisational behaviour
classificationCode: 350715
subject: Quality management

description: Human resource management (HRM) has recently emerged as an essential factor for organisations to achieve competitive advantage. Despite the astonishing efforts found in the HRM literature to investigate the relationship between the HRM system and organisational performance (OP), a number of theoretical and methodological gaps need to be further elaborated. These theoretical gaps can be summarised into one general question: ‘How does the HRM system affect OP?’ This question is referred to in the HRM literature as the ‘black box’, and the current thesis was mainly designed to address this question.<br><br>The literature indicated that the HRM system–OP relationship is no longer seen as a direct relationship; instead, an indirect relationship with mediating and moderating variables is highly advised. Building on the individual-level theory of job performance, human capital theory, the behavioural perspective, social exchange theor, attribution theory, and the content and process approach to HRM theory, the HRM system–OP relationship is better conceptualised as mediated by the ability, motivation and opportunity to participate (AMO) model, affective commitment and organisational citizenship behaviour. Employees’ ability (A), motivation (M), and opportunity to participate (O), were frequently used as a mediating mechanism in the HRM–OP relationship literature, yet not empirically tested simultaneously. The significance of the current thesis lies in the integration of different perspectives and approaches into one single model, which further enhances our understanding of the mechanism by which the HRM system affects OP.<br><br>Additionally, employees’ shared perception (strong climate) of which behaviours are required and rewarded is an important factor in investigating the black box of the HRM system–OP relationship. These perceptions were found in the literature to be affecting HRM outcomes represented by AMO. Moreover, it was indicated that the process through which the HRM system is implemented is as important as the content of that system. Despite the importance of a strong climate and the implementation process of the HRM system in furthering our knowledge of how the HRM system affects OP, few studies were found to integrate the content and process approach in studying the HRM system–OP relationship.<br><br>An extensive literature review was conducted to develop the measurement models intended to measure the different factors included in this thesis. The measurement models’ content and construct validity, reliability, and the goodness-of-fit indices were all assessed and assured through conducting confirmatory factor analysis. Quantitative cross-sectional data were gathered from 800 employees and 400 subscribers in the telecommunications companies in Kuwait. 200 employees have responded with a response rate of (25%), whereas 210 subscribers respond with a response rate of (52.5%). Structural equation modelling via AMOS 22 was used to build, validate and test the hypothesised models. The results indicate that the relationship between the HRM system and OP represented by service quality is mediated by AMO, affective commitment and organisational citizenship behaviour (OCB). In addition, the results have shown that a strong climate moderated the relationship between HRM and employees’ ability and motivation, while a non-significant moderation was observed in the opportunity to participate.<br><br>This thesis makes an original contribution to the HRM literature by developing and validating a comprehensive model that will help researchers open the black box of the HRM system–OP relationship. This study also provides valuable theoretical and practical recommendations that can help telecommunication companies to achieve a high service quality.