Human resource management and firm performance in Europe through the lens of business systems: best fit, best practice or both?

This study uses the lens of Business Systems theory to explore the importance of geographic context on the link between human resource management and organizational performance. Basing the analysis on 'HRM bundles of competitive advantage', drawing evidence from a large-scale survey of European private sector businesses, and using multiple methodologies, we find three distinct geographic regions and 21 'HRM bundles of competitive advantage'. Of those bundles 10 were significantly related to performance in one or more regions. The results raise issues about the universal applicability of HRM-performance research and have implications for the standardization of HRM policies and practices within internationally operating organizations.