Premium
The direct and indirect impact of employee benefits on firm performance in C hina
Author(s) -
Lin Zhaohong,
Yao Xing,
Zhao Zhe
Publication year - 2014
Publication title -
asia pacific journal of human resources
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.825
H-Index - 33
eISSN - 1744-7941
pISSN - 1038-4111
DOI - 10.1111/1744-7941.12037
Subject(s) - social exchange theory , business , value (mathematics) , marketing , business administration , industrial organization , psychology , social psychology , machine learning , computer science
Based upon social exchange theory, this paper investigates the relationship between employee benefits and firm performance by studying 324 firms of different ownership forms in C hina. The research proposes three benefit dimensions which are confirmed by the results of factor analysis. In addition, this research finds that a combined employee benefit system produces significant associations with overall firm performance and that the strength of the relationship is mediated by attitudinal and behavioral outcomes, which are generated from a psychological consequence of employees. This paper contributes to the knowledge on the value of employee benefits and has important implications for organizational practices.