HR contribution to firm's success examined from a configurational perspective: An exploratory study based on the Spanish Cranet data

The objective of this study was to examine whether a firm's economic/ financial success can be associated with the application of certain HRM policies, practices and strategies. In this empirical study, an extended rationale borrowd from a configurational conceptual model was used in order to examine the multiple linkages and architecture betwen certain HR policies and practices, HR department characteristics, and the overall economic/ financial performance of the firm. Employing a series of ANOVAs and classification and regression tree analyses, results show that HRM policies and practices play an important role in predicting the economic/ financial success of the firm in the intermediate range. In relative terms and within the tree architectural structure, the HR function within certain configurations plays an important strategic and operational role in adding value to the firm's bottom line. In contrast, when some HR policies and practices are absent or poorly implemented, the detrimental consequences to the firm's economic/ financial performance can be observed.