Abstract:
This paper is based on empirical research carried out on firms listed on the Nairobi Securities
Exchange in Kenya, focusing on the joint and individual effects of Human Resource
Management Practices (HRMP), organizational learning, employee outcomes and competitive
strategy on firm performance. Previous research demonstrating the link between HRMP and
firm performance has mainly focused on the private sector in the Developed World but has not
used the selected variables, yet understanding this relationship in publicly listed firms, in the
Developing World setting is equally important. The joint effect of HRMP, organizational
learning, employee outcomes and competitive strategy on firm performance has not been
established with the selected set of variables, yet theory has demonstrated that these variables
can have an effect on firm performance. This study was motivated by the desire to fill this gap
in knowledge. The objective of the study was to establish whether the joint effect of HRMP,
organizational learning, employee outcomes and competitive strategy on firm performance is
greater than the independent effect of HRMP, employee outcomes, organizational learning and
competitive strategy on firm performance. The research design was cross sectional descriptive
survey. Data was collected using a self-administered questionnaire, from a population of 60 NSE
listed firms. The response rate was 60%. Descriptive statistics, correlation and regression
techniques were used to analyze the data. The results of the study show that there was empirical
evidence that the joint effect of HRMP, employee outcomes, organizational learning and
competitive strategy on firm performance was greater than the individual independent effects of
HRMP, employee outcomes, organizational learning and competitive strategy on firm
performance. This study contributes to understanding of the effect the predictor variables on
firm performance, while at the same time confirms the findings of previous studies that have
found a significant link between HRMP and firm performance. The study also established that
the combined effect of predictor variables on firm performance was greater than the individual
independent effects of the predictor variables on firm performance. It is recommended that
firms have to ensure that they synergistically combine various variables that they choose to use
in order to attain and sustain a superior competitive advantage in their operations.
