Customer service-focused HRM systems and firm performance: evidence from the service industry in Taiwan

Minston Chao, Chih Ting Shih*

*Corresponding author for this work

Research output: Contribution to journalJournal Article peer-review

20 Scopus citations


This study adopts a resource-based view, attraction–selection–attrition theory and a focused approach to examine the link between service-focused human resource management (HRM) systems and firm performance. Internally, we examine employee competency as the ‘black box’ between service-focused HRM systems and firm performance. Externally, we examine the effect of the interplay of a service-focused strategy and service-focused HRM systems in predicting firm performance. We collect data from different sources (i.e. executives, human resource members, and line managers). Using a final sample included 2120 respondents from 175 firms in the service industry in Taiwan, the results show that customer service-focused employee competency transmitted 53% of the effect of customer service-focused HRM systems on firm performance. In addition, when a firm implements a less service-focused business strategy, service-focused HRM systems leads to significant improvement in firm performance. Implications for research are discussed.

Original languageEnglish
Pages (from-to)2804-2826
Number of pages23
JournalInternational Journal of Human Resource Management
Issue number19
StatePublished - 28 10 2018

Bibliographical note

Publisher Copyright:
© 2016, © 2016 Informa UK Limited, trading as Taylor & Francis Group.


  • Fit
  • service-focused HRM systems
  • service-focused employee competency, firm performance, service industry in Taiwan
  • service-focused strategy


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