Friends or rivals: comparative perceptions of human resource and line managers on perceived future firm performance

Abstract Based on stakeholder theory, we examined whether perceptions and actual relationships between human resource (HR) and line managers influence perceived future firm performance as rated by line managers. With a matched sample of 105 HR managers and line managers working in Hong Kong, we found that when line managers perceived HR as an effective function, a higher level of HR involvement in the strategic planning process was positively associated with perceived future firm performance. Moreover, HR managers rated HR effectiveness higher than line managers. The discrepancy of perceived HR effectiveness between HR managers and line managers was negatively associated with perceived future firm performance. Furthermore, HR managers, in contrast to line managers, perceived horizontal collaboration as being positively related to perceived future firm performance. Limitations and managerial implications are discussed. Keywords: firm performancehorizontal collaborationHR effectivenessHR involvementline managers Acknowledgment The authors gratefully acknowledge Dr. Richard L. Priem and Dr. Margaret A. Shaffer for their invaluable guidance and efforts on this manuscript. Notes 1. All authors contributed equally to this manuscript. Additional informationNotes on contributorsYu-Ping Chen 1 Yu-Shan Hsu 1 Felix Wai-Kwong Yip 1