This study tests whether strategic human resource management (SHRM)
effectiveness signicantly affects organizational level outcomes. Using the resource-based
view of the rm, this study examines the effective use of human capital on organizational
performance. Further, the role that a contextual factor – capital intensity – plays in
modelling is explored. Results show that SHRM effectiveness signi cantly reduces employee turnover and increases overall market performance assessment. However, SHRM effectiveness affected both rm productivity and return on equity only when moderated by capital intensity.