The approaches view HR as having an important role in supporting organizational strategy and still play an important role in developing SHRM. Generic HR processes can benefit from best practice theories while best fit should be applied when context matters to align management and employee interests. Competitive strategies are deemed strategic in linking HR policies and practices to the goals of the business and the external context of the firm, and are therefore contributing in different ways to performance. Increasingly, many firms are pursuing competitive strategies aimed at cost reduction, quality improvement and innovation with the goal of gaining competitive advantage through HR.