Looking into the black-box: analysis of the effectiveness of human resources strategy *

Numerous studies have shown a positive relationship between Human Resources Management (HRM) and fi rm performance. However, in spite of the variety of studies, adopted approaches and statistical methodologies to be found, it has not been possible to clarify the exact manner and conditions under which HRM can become a source of competitive advantage. This can be explained by the fact that most empirical works have ignored mediating hypothesis and merely examined the direct relationship between High Performance Work Systems (HPWS) and fi rm performance. This article, attempts to gain further insights into such an analysis by integrating the two main theoretical approaches in this fi eld: The Resource Based View (RBV) of fi rm and Behavioural Theory. Using a sample of 62 fi nancial fi rms we examined this mediating and moderating effect of Human Capital and HR Outcomes on the HPWS – Business Performance linkage. Hierarchical Regression Analysis revealed that HPWS was positively related to fi rm performance, Human Capital and HR outcomes. In addition, the level of Human Capital and HR outcomes mediate the relationship between HPWS and fi rm performance. These results shed new light on the mechanisms through which HPWS impacts business performance.