The aim of this paper is to examine the effects of business strategy and human resource management (HRM) strategy on organizational performance by investigating auto-parts manufacturing firms in Taiwan. The results indicate that business strategy and the linkage between business strategy and HRM strategy have significant effects on organizational performance. Firms adopt reactor strategy have significantly lower performance than others. On the other hand, firms with analysis strategy share significantly higher employee efficiency. In addition, firms with fit business and HRM strategy have significant higher performance than that without. However, findings in this study show that HRM strategy has no independent effect on firm performance. The management implications for Taiwanese auto-parts manufacturers are also discussed.
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