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HR practices or HR capabilities: which matters? Insights from the Asia Pacific region

Georgia State University, Atlanta, Georgia, USA, hjpark{at}gsu.edu

Timothy M. Gardner

Brigham Young University, Provo, Utah, USA

Patrick M. Wright

Cornell University, Ithaca, New York, USA

In the human resource management literature there is an ongoing debate about which is the key organizational resource: human resource (HR) practices or HR capabilities. Our study attempts to address this debate by examining which resource HR executives in the Asia-Pacific region find to be important for the future organizational and people needs of their firms. Results indicate that HR capabilities are central to organizations. Development of core competencies, agile organizations, and effective management of human resources will be pivotal to responding effectively to future business needs. Results also indicate that the lingering effects of the Asian financial crisis and competition from local and global competitors will affect organizational and people management in the years to come. These findings inform HR practitioners and shed light on the application of the resource-based view of the firm to the study of human resource management.

Key Words: Asia-Pacific region • HR capabilities • HR practices • resource-based view of the firm

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