There has been little empirical evidence that HRM’s impact is contingent upon the
approach to business strategy adopted (Huselid, 1995; Becker and Gerhart, 1996;
Fey et al., 2000). However, support for the contingency theory was found by Hoque
(1999), who found a relationship between HRM and performance only among
‘quality-enhancer’ hotels and among hotels in his ‘other’ category, and that HRM is
ineffective where strategy is characterized by cost control. Khatri (2000) also found
support for a link between the impact of organizational strategy on HR practices
and of the moderating influence of overall strategy on the relationship between HR
practices and performance.