The flexible HRM and firm performance nexus: Can empowering leadership play any contingent role?

Pahi, Munwar Hussain and Ahmed, Umair and Imroz, Sohel M. and Shah, Syed Mir Muhammad and Yong, Irene Seok Ching (2024) The flexible HRM and firm performance nexus: Can empowering leadership play any contingent role? International Journal of Productivity and Performance Management, 73 (2). 629 – 647. ISSN 1741-0401, DOI https://doi.org/10.1108/IJPPM-06-2021-0360.

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Abstract

Purpose: The purpose of this empirical research was to investigate the individual effects of three dimensions of flexible human resource management (HRM) practices – skill flexibility, behavioral flexibility and human practice flexibility on firm performance and to what extent these relationships are strengthened/weakened when there was the moderation of empowering leadership in small- and medium-sized enterprises (SMEs) of the Kingdom of Bahrain. Design/methodology/approach: The data were collected from chief executive officers (CEOs) through a questionnaire survey method to test the hypothesized relationships. A final dataset of 315 valid responses was utilized for data analysis, and results were analyzed using the Smart partial least squares structural equation modeling (PLS-SEM) technique. Findings: The findings revealed positive effects of skill flexibility, behavioral flexibility and human practice flexibility on firm performance. The moderating role of empowering leadership further strengthened the effects of employee skill flexibility and employee behavioral flexibility had on firm performance. However, empowering leadership did not pose any moderating effect on human practice flexibility and firm performance relationship. Research limitations/implications: This paper offers implications for theories on HRM and leadership. It also provides valuable insights for organizations and leaders seeking to boost firm performance across SMEs. Practical implications: This paper offers implications for theories on HRM and leadership and also contributes in the understanding of the modern managers. Originality/value: This paper investigated the effects of flexible HRM practices on firm performance and the role of empowering leadership across SMEs in Bahrain. It also explored how the performance of SMEs can be improved using flexible HRM practices followed by the presence of empowering leadership. © 2023, Emerald Publishing Limited.

Item Type: Article
Funders: UNSPECIFIED
Uncontrolled Keywords: Behavioral flexibility; Empowering leadership; Firm performance; Human practice flexibility; Skill flexibility
Subjects: H Social Sciences > HF Commerce > Business
Divisions: Centre for Internship & Academic Enrichment (CITRA)
Depositing User: Ms. Juhaida Abd Rahim
Date Deposited: 11 Jul 2024 02:57
Last Modified: 11 Jul 2024 02:57
URI: http://eprints.um.edu.my/id/eprint/44797

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