Alignment between human resources strategies and business competition strategies: A field study

The aim of this study, which was conducted based on quantitative research methods, is to investigate the effects of different strategic fit dynamics between business strategies and human resources strategies of large-scale organizations operating in Turkey on perceived organizational performance variables. In the study, Miles and Snow (1978)'s strategy typology (defender, prospector, analyzer) was used to determine business strategies, and Miles and Snow (1984a, 1984b, 1994)'s fit framework (tight fit, minimal fit, non-fit) was used to determine adaptation dynamics. Examining the moderation role of firm size in the relationship between fit and performance is also among the aims of the study. Survey technique was used to collect data. The online form was sent to the HR professionals of 669 businesses in the "ISO Top 500 and ISO Second 500 Largest Industrial Enterprises 2020" and "FORTUNE 500 Turkey 2020" lists, and responses were obtained from 102 organizations. The result of the hypothesis tests revealed, that different strategic fit categories did not create a statistically significant difference in performance. The moderating effect of firm size on the relationship between fit dynamics and performance was not found to be significant. While no statistically significant difference was found, there was a noticeable trend suggesting that a tight fit and minimal fit are associated with improved performance. The study draws attention to the positive impact of strategies compatible with HR practices on performance, that tight fit and minimal fit result in better performance, and emphasizes that managers should be more inclined towards strategic HR management. The study undertaken in Turkey, where strategic human resource management is advancing, differs from previous research in terms of methodology, the idea of strategic fit dynamics, the nature of the sample, and its non-Western origin. Within the scope of additional analyses, the study also examined whether organizational performance differs significantly according to the different strategies adopted by organizations. The findings reveal that employee relations performance varies significantly according to different strategies. In addition, it was determined that defender, prospector, and analyzer strategies had positive and significant effects on perceived market performance, product service performance, and employee relations performance. Overall, the results suggest that strategies aligned with HR practices can have a positive impact on performance.