Опубліковано черговий випуск журналу 1 (28) 2023

Ukrainian (UA)English (United Kingdom)

Інші рубрики

Вхід / реєстрація


Звідки Ви дізналися про наш сайт ?

Corporate governance, HRM practices and organizational performance



Corporate governance, HRM practices and organizational performance



Ibrahim, Hazril Izwar
Zulkafli, Abdul Hadi



Universiti Sains Malaysia, 11800 USM Penang, Malaysia
Бібліографічний опис: Ibrahim H. Corporate governance, HRM practices and organizational performance [Електронний ресурс] / Hazril Izwar Ibrahim, Abdul Hadi Zulkafli // Соціально-економічні проблеми і держава. — 2016. — Вип. 1 (14). — С. 30-40. — Режим доступу до журн.: http://sepd.tntu.edu.ua/images/stories/pdf/2016/16hiiaop.pdf.
Bibliographic description (International):  Ibrahim, H., & Zulkafli, A. (2016). Corporate governance, HRM practices and organizational performance. Socio-Economic Problems and the State. 14 (1), 30-40. doi:10.14254/2223-3822.2016.14-1.4
Issue:  1
Volume:  14

Дата публікації:

(Date of publication)

Submitted date:  April, 2016





JEL:  G34

Ключові слова:

(Key words)

corporate governance
human resource management
organizational performance

Діапазон сторінок:


Анотація (Abstract):  This study is unique as it analyzes corporate governance concept from a stakeholders’ perspective, instead of the more dominant shareholders’ perspective as indicated in previous studies. The study attempts to bridge the gap in the existing literature by examining the link between corporate governance, HRM practices and organizational performance. Attempt is also made to include the role of HRM as a mediator in explaining the relationship between corporate governance practices and firm performance. Data were collected from public listed companies in the consumer product sector in Malaysia. Using multiple regression analysis, the significance of the relationship between HRM practices and organizational performance is observed thus provides the evidence that HRM plays an important role for companies and this parallels previous studies. The result also implies that there is a link between corporate governance practices implemented in companies and the types of HRM practices implemented. Most importantly, the findings of the study reveal that the stakeholder approach is a viable approach to be taken in studying corporate governance. Despite the difficulties in gaining co-operation and responses from the companies involved, it proves that the stakeholders specifically the employees are aware of the issue of corporate governance and the companies are required to raise and maintain their standards.
URI:  http://elartu.tntu.edu.ua/handle/123456789/16847
ISSN:  2223-3822
References:  1. Abrams, F. W. (1951). Management’s Responsibilities in a Complex World. Harvard Business Review, 29, 54-64.
2. Aguilera, R.V., & Jackson, G. (2003). The cross-national diversity of corporate governance: Dimensions and determinants. Academy of Management Review, 28(3), 447–465.
3. Akdere, M. (2009). A multi-level examination of quality-focused human resource practices and firm performance: evidence from the US healthcare industry, The International Journal of Human Resource Management, 20, 9, 1945–1964.
4. Alkalha, Z.S., Al-Zu'bi, Z.M.F., Al-Dmour, H., Alshurideh, M. & Masa'deh, R.M.T. (2012). Investigating the Effects of Human Resource Policies on Organizational Performance: An Empirical Study on Commercial Banks Operating in Jordan, European Journal of Economics, Finance and Administrative Sciences, 51, 45-67.
5. Baker, G.P., Gibbons, R. & Murphy, K.J. (1999). Informal Authority in Organizations, Journal of Law, Economics and Organization, 15.
6. Bathala, C.T and Rao, R. P. (1995). The Determinants of Board Composition: An Agency Theory Perspective, Managerial and Decision Economics, 16, 59-69.
7. Becker, B. E., & Huselid, M. A. (2006). Strategic human resources management: Where do we go from here? Journal of Management, 32, 898-925.
8. Beiner, S., & Schmidt, M.M. (2005). Agency conflicts, corporate governance and corporate diversification-Evidence from Switzerland, http://papers.ssrn.com/sol3/papers.cfm.
9. Berle, A., & Means, G. (1932). The Modern Corporation and Private Property, Macmillan: New York.
10. Bhagat, S., & Black, B., (2002). The non-correlation between board independence and long term firm performance, Journal of Corporation Law, 27, 231–274.
11. Bhagat, S. & Bolton, B. (2008). Corporate governance and firm performance, Journal of Corporate Finance, 14, 257–273.
12. Black, B. (2001). The Corporate Governance Behavior and Market Value of Russian Firms, Emerging Markets Review, 2, 89-108.
13. Black, S.E. & Lynch, L/M. (1997). How to Compete: The Impact of Workplace Practices and Information Technology on Productivity, NBER Working Papers 6120, National Bureau of Economic Research.
14. Boxall, P. & Purcell, J. (2008). Strategy and human resource management, 2nd edition, Palgrave Macmillan: London.
15. Brickley, J. A. & James, C. M. (1987). The Takeover Market, Corporate Board composition, and Ownership Structure: The Case of Banking, Journal of Law and Economics, 30, 161-181.
16. Brickley, J. A., Coles, J. L. & Terry, R. L. (1994): “Outside Directors and the Adoption of Poison Pills”, Journal of Financial Economics, 35, 371-390.
17. Byrd, J. W. & Hickman, K. A. (1992). Do outside Directors Monitor Managers: Evidence form Tender Offer Birds, Journal of Financial Economics, 32(2), 195-221.
18. Cadbury Committee (1992), Cadbury Committee Report: Financial Aspects of Corporate Governance, Burgess Science Press: Basingstoke.
19. Caldwell, C., Hayes, L., Karri, R., & Bernal, P. (2008). Ethical stewardship – Implications for leadership and trust. Journal of Business Ethics, 78, 153-164.
20. Caldwell, C., Karri, R., & Vollmar, P. (2006). Principal theory and principle theory: Ethical governance from the follower’s perspective. Journal of Business Ethics, 66, 207-223.
21. Caldwell, C., Truong, D., Linh, P., & Tuan, A. (2010). Strategic human resource management as ethical stewardship. Journal of Business Ethics, 98(1), 171-182.
22. Chung, K. H., Wright, P. and Kedia, B. B. (2003). Corporate Governance and Market Valuation of Capital and R&D Investment, Review of Financial Economics, 12, 161-172.
23. Delery, J. E., & Doty, D. H. (1996). Modes of Theorizing in Strategic Human Resource Management: Tests of Universalistic, Contingency, and Configurational Performance Predictions, Academy of Management Journal, 39(4), 802-835.
24. Dess, G.G. & Robinson, R.B. Jr. (1984). Measuring organizational performance in the absence of objective measures: The case of the privately-held firm and conglomerate business unit. Strategic Management Journal, 5, 265-273.
25. Dewing, I. P. & Russell, P. O. (2004). Regulation of UK corporate governance: Lessons from accounting, audit and financial Services, Corporate Governance, 12, 107.
26. Ferguson, C. & Kang D. (2008). Corporate governance and misappropriation, Journal of Forensic Accounting: auditing, fraud, and taxation. 9(2), 26.
27. Filatotchev, I. & Guest, D. (2005). Introduction: Corporate Governance, Human Resource Management and Film Performance, DTI Economics paper no.13, joint DTI/King’s College London Seminar.
28. Freeman, R. E., Wicks, C. A. & Parmar, B. (2004). Stakeholder Theory and The Corporate Objective Revisited, Organization Science, 15(3), 364-369.
29. Fuller, C. L. (1999). How HR can become a corporate boardroom player. Workforce, 78(1), 40.
30. Fynes, B., Voss, A. C., & Búrca, S. (2005). The Impact of Supply chain relationship dynamics on manufacturing performance. International Journal of Operations & Production Management, 25(1), 6-19.
31. Gnan, L.,Hinna, A., Monteduro, F. & Scarozza, D. (2013). Corporate governance and management pactices:stakeholder involvement, quality and sustainability tools adoption. Journal of Management & Governance, 17, 907–937.
32. Gollan, P. & Wilkinson, A. (2007). Contemporary Developments in Information and Consultation, International Journal of Human Resource Management, 18, 7.
33. Gompers, P.A., Ishii, J.L. & Metrick, A. (2003). Corporate governance and equity prices, Quarterly Journal of Economics, 118(1), 107–155.
34. Gospel, H. & Pendleton, A. (2003). Finance, corporate governance and the management of labour. A conceptual and comparative analysis. British Journal of Industrial Relations, 41 (3), 557-582.
35. Gospel, H. & Pendelton, A., (2005). Corporate governance and labour management: An international comparison, Oxford University Press: Oxford.
36. Guest, D. (2005). Corporate governance and human resource management, DTI Economics paper no.13, joint DTI/King’s College London Seminar.
37. Guthrie, J. P. (2001). High-involvement Work Practices.Turnover and Productivity: Evidence from New Zealand. Academy of Management Journal. 44(1), 180-190.
38. Hall, P.A. & Soskice, D. (2001). Varieties of Capitalism: The Institutional Foundations of Comparative Advantage. Oxford University Press: Oxford.
39. Haniffa, R.M. & Cooke, T.E. (2002). Culture, corporate governance and disclosure in Malaysian corporations, ABACUS, 38(3), 317-350.
40. Haniffa, R.M. & Cooke, T.E. (2005). Impact of Culture and Governance Structure on Corporate Social Reporting, Journal of Accounting and Public Policy, 24, 391-430.
41. Hee, F.T. (2003). Corporate governance and corporate law reform in Malaysia: the impact of modernisation, globalisation, and the communications revolution Malaysia, Sweet & Maxwell Asia: Kuala Lumpur.
42. Hernández, M. (2005). Promoting stewardship behavior in organizations: A leadership model. Journal of Business Ethics, 80, 121-128.
43. Ho, S.S.M. & Wong, K.S. (2001). A study of the relationship between corporate governance structure and the extent of voluntary disclosure, Journal of International Accounting, Auditing and Taxation, 10(2), 39-156.
44. Homburg, C., Krohmer, H. & Workman, J.P. (2004). A Strategy Implementation Perspective of Market Orientation, Journal of Business Research, 57, 1331-40.
45. Hooley, G. & Greenley, G. (2005). The Resource underpinnings of competitive positions. Journal of Strategic Marketing. 13(2), 93-116.
46. Hossain, M., Cahan, S. F. & Adams, M. B. (2000). The Investment Opportunity Set and the Voluntary Use of Outside Directors: New Zealand Evidence, Accounting and Business Research, 30(4), 263-273.
47. Huselid, M.A. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance, Academy of Management Journal, 38, 635-672.
48. Huselid, M. A., Jackson, S., & Schuler, R. S. (1997). Technical and strategic human resource management effectiveness as determinants of firm performance. The Academy of Management Journal, 40(1), 171-188.
49. Hutchinson, M. (2002). An Analysis of the Association between Firms’ Investment Opportunities, Board Composition, and Firm Performance, Asia Pacific Journal of Accounting and Economics, 9, 17-39.
50. Ichniowski, C., Shaw, K. & Prennushi, G. (1995). The Impact of Human Resource Management Practices on Productivity, N.B.E.R. Working Paper, 5333.
51. Kay, J. (2004). The truth about markets: why some nations are rich but most remain poor. Penguin: London.
52. Klapper, L. F., and Love, I. (2003). Corporate Governance, Investor Protection, and Performance in Emerging Markets, Journal of Corporate Finance, 195, 1-26.
53. Konzelmann, S. (2003). Markets, Corporate Governance and Creative Work Systems: The case of Ferodyn, The Journal of Interdisciplinary Economics, 14, 139-158.
54. Konzelmann, S., Conway, N., Trenberth, L. & Wilkinson, F. (2006). Corporate Governance and Human Resource Management, British Journal of Industrial Relations. 43(3), 541-567.
55. La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (1998). Law and Finance, Journal of Political Economy, 106, 1113-1155.
56. Lamba and Choudary (2013). Impact of HRM practices on organizational commitment of employees, International Journal of Advancements in Research & Technology, 2(4), April.
57. Legge, K. (2004). Human resource management: rhetoric and realities (Anniversary edition), Palgrave: London.
58. Letza, S., Sun, X. & Kirkbride, J. (2004). Shareholding versus stakeholding: A critical review of corporate governance. Corporate Governance: An International Review, 13(3), 242–262.
59. Mak, Y.T. & Li, Y. (2001). Determinants of Corporate Ownership and Board Structure: evidence from Singapore, Journal of Corporate Finance, 7, 235-256.
60. Martin, G. & Hetrick, S. (2006). Corporate reputations, branding and managing people: a strategic approach to HR. Butterworth-Heinemann: Oxford.
61. Martin, G. & McGoldrick, J. (2009). Corporate governance and HR: some reflections and a case study from the UK National Health Service, in Young, S. (ed.) Contemporary Issues in International Governance, Tilde University Press: Melbourne.
62. Mendoza, A.M.E., Supangco,V. T.& Tolosa, M.T.B. (2005). A Look into the Role of Human Resource Management in Corporate Governance and Risk Management: The Philippine Experience, Advances in Public Interest Accounting, 11, 195 – 222.
63. Mitton, T. (2002). A cross-firm Analysis of the impact of corporate governance on the East Asian financial Crisis, Journal of Financial Economics, 64, 215-241.
64. Moideenkutty, U., Al-Lamki, A., & Rama Murthy, Y. S. (2011). HRM Practices and Organizational Performance in Oman. Personnel Review, 40(2), 239 -251.
65. O'Donovan, G. (2003). A Board Culture of Corporate Governance, Corporate Governance International Journal, 6(3), 22-30.
66. Ow-Yong, K. & Guan, C.K. (2000). Corporate governance codes: A comparison between Malaysia and the UK, Conference Papers, 8(2), 125-132.
67. Palmatier, R.W., Rajiv P. D., & Dhruv, G. (2007). A Comparative Longitudinal Analysis of Theoretical Perspectives of Interorganizational Relationship Performance, Journal of Marketing, 71 (October), 172–94.
68. Panayides, P.M. (2010). Competitive strategies and organizational performance in ship management. Maritime Policy & Management. 30, 123-140.
69. Park, Y. W. & Shin, H. H. (2003). Board Composition and Earning Management in Canada, Journal of Corporate Finance, 185, 1-27.
70. Pelayo-Maciel,J., Calderón-Hernández, G. & Serna-Gómez,H.M. (2012) Corporate Governance Structure and Its Impact on Human Resource Management and Financial Performance. China-USA Business Review. 11, 1133-1145.
71. Prevost, A. K., Rao, R. P. & Hossain, M. (2002). Determinants of Board Composition in New Zealand: A Simultaneous Equation Approach, Journal of Empirical Finance, 9, 373-397.
72. Rashidah, A.R. & Fairuzana, H.M.A. (2006). Board, audit committee and earnings management: Malaysian evidence. Managerial Auditing Journal, 21, 783–804.
73. Rashidah, A.R. & Roszaini, H. (2005). The effect of role duality on corporate performance in Malaysia, International Scientific Journal of Corporate Ownership & Control, 2, 40–47.
74. Roscoe, J. T. (1975) Fundamental Research Statisctics for the Behaboural Sciences (2nd ed.). New York: Holt, Rinehart and Winston.
75. Roe M.J. (1994) The Political Roots of American Corporate Finance. Princeton University Press: Princeton.
76. Sang, W.N. & Il, C.N. (2004) Corporate Governance in Asia: Recent evidence from Indonesia, Republic of Korea, Malaysia and Thailand. Asian Development Bank Institute.
77. Singh, M & Davidson III, W N (2003). Agency Costs, Ownership Structure and Corporate Governance Mechanisms, Journal of Banking and Finance, 27, 793-816.
78. Sisson, K. ((2007). Facing up to the challenges of success: putting ‘governance’ at the heart of HRM, in J. Storey (Ed.) Human resource management: a critical text, Thomson: London.
79. Sorasak Tangthong, S. And Trimetsoontorn, J. and Rojniruntikul, N. (2014). HRM practices and employee retention in Thailand – A literature review, International Journal of Trade, Economics and Finance, 5(2), April. http://dx.doi.org/10.7763/IJTEF.2014.V5.362
80. Storey, J. (1987). Developments in the management of human resources: an interim report, Warwick Papers in Industrial Relations, 17, IRRU, School of Industrial and Business Studies, University of Warwick (November).
81. Supangco, V. T. (2006). HR Involvement in Corporate Governance. Philippine Management Review, 13, 101-116.
82. Tirole, J. (2001). Corporate governance. Econometrica, 69(1), 1–35.
83. Venkatraman, N. & Ramanujam, V. (1985) Construct validation of business economic performance measures: A Structural Equation Modeling approach. Paper presented at the annual meeting of the Academy of Management, San Diego.
84. Wan Izyani Adilah, W.M. (2008). Corporate governance mechanisms and extent of disclosure: analysis of main board and second board companies in Malaysia, unpublished dissertation, International Islamic University.
85. Wright, M., Filatotchev, I., Buck, T., & Bishop, K. (2003). Is stakeholder corporate governance appropriate in Russia? Journal of Management and Governance, 7, 263–290.
86. Youndt, M. A., Snell, S. A., Dean, J. W., Jr., & Lepak, D. P. (1996). Human Resource Management, Manufacturing Strategy, and Firm Performance, Academy of Management Journal, 39(4), 836-866.
87. Young, B (2003). Corporate Governance and Firm Performance: Is there a Relationship? Ivey Business Journal Online, 1-4.

Розташовується у зібраннях:

(Is situated in collections)

Журнал „Соціально-економічні проблеми і держава“, 2016, Випуск 1(14)



Журнал індексується в:

Інші корисні посилання:
Пошук у EBSCO

Google translate

Ukrainian English French German Polish Russian