6. Conclusion
The findings of this study failed to show major support for the importance of
external fit. HRM proved to be ineffective in both ‘quality-enhancer’ and ‘costreducer’
business strategy environments in relation to HR outcome variables;
ineffective in a ‘quality-enhancer’ business strategy environment in relation to four
performance outcome variables (labour productivity, quality of service, financial performance, and service innovations) and effective in relation to two performance
outcomes (market share and sales growth); ineffective in a ‘cost-reducer’ environment
on all performance outcome variables. Given Hoque’s findings in the UK, we
would not expect to find HRM having a positive impact on HR and performance
outcomes in a cost-reducer environment. However, we would expect to find this in a
quality-enhancer environment—the fact that this relationship was found only in two
performance outcomes and not at all in relation to HR outcomes seems to disprove
this study’s first hypothesis.