This study tests whether strategic human resource management (SHRM)
effectiveness signicantly affects organizational level outcomes. Using the resource-based
view of the firm, 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 signicantly reduces employee turnover and increases overall market performance assessment. However, SHRM effectiveness affected both firm productivity and return on equity only when moderated by capital intensity.