Abstract

We develop a theoretical framework to examine three hypotheses on the relationship
between human resource management (HRM) practices and organisational
performance in European firms. The first is that collaborative forms of HRM
practice are more strongly associated with superior firm performance than
calculative forms. The second is that these associations are strongest where national
institutional and normative settings support them. The third is that employer–
employee consultative committees and collective payment methods are also
associated with superior firm performance. The first two propositions are strongly
empirically supported, as is the third, albeit more weakly. The implications of the
findings for European policy and Varieties of Capitalism theory are discussed.