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HR strategic integration is a key factor reflecting the strategic use of human resources for competitive advantage. It has been argued that the changing business environmental factors such as industry conditions, institutional factors and organizational characteristics drive the emergence of HR strategic integration. However, empirical evidence about the environment factors and HR strategic integration relationship in China is inconsistent, which might be attributed to methodological and theoretical considerations. To address these issues, we draw on strategic tripod theory and employ a multi-source (combining HR managers’ subjective evaluations and Statistical Yearbook objective data), time-lagged (across three years), and multi-level research design to examine the environmental factors and the HR–strategic integration relationship. We explore the main and interactive effects of three key environmental variables (industry dynamism, firm size, and firm ownership) on HR strategic integration. We find that three-way interactions of environmental variables are more effective in explaining the relationship between context and HR strategic integration than are two-way interactions and main effects. Our study contributes to the HRM and strategy management literature.

The effects of industry dynamism, firm size, and ownership on HR strategic integration in China