The aim of this paper is to contribute to this understanding by focusing on the interplay between internal and external factors of the organisation. Given data constraints, whilst most of the extant literature on HRM has focused mainly on the internal factors, we suggest that the domain of the internal factors considered thus far has been narrow, and therefore needs to be widened, and also that external factors –which are of equal importance – need to be explicitly acknowledged as well. We make this clear schematically in Figure 1, and suggest ways by which they can be
incorporated within the HRM-OP link