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HR flexibility and firm performance in professional service firms

Published online by Cambridge University Press:  16 March 2021

Inmaculada Beltrán-Martín Open the ORCID record for Inmaculada Beltrán-Martín [Opens in a new window] ,
Juan Carlos Bou-Llusar  and
Alejandro Salvador-Gómez
Inmaculada Beltrán-Martín*
Affiliation:
Department of Business Management and Marketing, Universitat Jaume I, Castellón, Spain
Juan Carlos Bou-Llusar
Affiliation:
Department of Business Management and Marketing, Universitat Jaume I, Castellón, Spain
Alejandro Salvador-Gómez
Affiliation:
Department of Business Management and Marketing, Universitat Jaume I, Castellón, Spain
*
*Corresponding author. E-mail: [email protected]
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Abstract

Human resource (HR) flexibility emerges as the most critical source of flexibility for professional services firms (PSFs), given that the success of these companies depends on the knowledge, expertise and behaviors of their employees. Nonetheless, few empirical studies have analyzed the extent to which the characteristics of the workforce explain the results of this type of firm. This study attempts to advance in this line of research by analyzing the influence of HR resource flexibility dimensions (skill flexibility – SF and behavior flexibility – BF) on PSF performance. It also examines whether HR coordination flexibility (CF) strengthens the effect of SF and BF on performance. Matched data from 97 general managers and 291 professionals in a sample of Spanish PSFs is used to test the hypotheses through structural equation modeling methodology. The study demonstrates that employee BF has a significant effect on the development of new services in PSFs. The moderation model shows that HR CF increases the influence of BF on the development of new services. Contrary to what was expected, no significant relationship between SF and PSF performance was found.

Keywords

Behavior flexibilitycoordination flexibilitydynamic capabilitiesProfessional service firmsresource-based viewskill flexibility
Type
Research Article
Information
Journal of Management & Organization , First View , pp. 1 - 22
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2021

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