The Effect of Human Resource Management Practices on Firm Social Capital

Firm social capital has assumed a critical role in the successful implementation of human resource management (HRM). The article focuses on the ways in which the HRM practices influence the creation and utilization of social capital in Chinese firms. This study offers empirical evidence to address the problems, based on data collected from 42 firms. The findings suggest that HRM practices, including staffing system, compensation planning, information communication, organization environment and job design, are positively associated with firm social capital. It shows that HRM is an important way to develop, expand and accumulate the firm social capitals. Implications for managers are discussed.