The effect of human resource management practices on firm performance in Russia

Abstract Based on 101 foreign firms operating in Russia, the effect of human resource management (HRM) on firm performance in Russia is investigated. This is accomplished by developing and testing a model including HR outcomes (motivation, retention development) as a mediating variable between HRM practices and firm performance. Our study provides some support for the use of HRM outcomes as a mediating variable between HRM practices and firm performance. The results also indicate that non-technical training and high salaries will have a positive impact on HR outcomes managers while job security is the most important predictor of HR outcomes for employees. Thus, our study provides support for the importance of including both managers and non-managers in the same study, but treating them separately. In addition, results indicate a direct positive relationship between managerial promotions based on merit and firm performance for managers and job security and performance non-managers. Keywords: Human Resource ManagementFirm PerformanceRussiaMultinational Corporations