A study of the relationship between strategic human resource management and organizational performance with organization citizenship behavior as the mediator

Abstract

Strategic human resource management (SHRM) plays a vital role in the success and performance of organisations. People are the essential elements for the development of organizations. Although extensive literature is available on the effectiveness of SHRM to enhance organizational performance, it is unclear which SHRM practices can be linked with organizational performance. Thus, to fill this gap, this study examined the relationship between SHRM practices and organizational performance in the Iraqi oil sector. In addition, the study identified the mediating role of organizational citizenship behaviour (OCB) between SHRM practices and organizational performance. Fifteen Iraqi oil industry companies (oil and gas) are owned by the public sector and represent the stratified sample, with the unit of analysis represented by the managers and heads of departments. The study utilized a random sample of the Iraqi oil sector comprising two companies each to represent upstream industry, downstream industry, and midstream industry. The quantitative method using questionnaire-survey and structural equation modelling (SEM) were utilized. A total of 366 questionnaires were distributed equally to companies within the chosen sample. After initial data screening, 301 responses were used for the final data analysis using SEM. Results indicated that SHRM practices, namely recruitment and selection, training and development, and compensation and rewards are directly linked with organizational performance. Meanwhile, training and development, compensation and rewards indirectly influenced organizational performance through the OCB. Findings of this study are useful to the Iraqi oil sector to enhance their organizational performance through the use of appropriate SHRM practices.