There are a number of studies (Appelbaum, 2000; Huselid, 2005; Wright, 2005: Schuler & Jackson, 2001)
focusing on the main competitive factors of business organizations because of their contribution in the global
economy.
The quest for competitive advantage has long been a central tenet of the field of strategic management
(Armstrong, 2009).
Within this field, the configurational theory has emerged as a promising new framework for analyzing the sources and sustainability of competitive advantage. In SHRM, internal fit and external fit are the
two main research streams.
Scholars have long held that in addition to internal organization characteristics,environmental characteristics also significantly influence firm performance since the external environmental characteristics represent customer demands and nature of market competition which are important determinants of firm performance.