This study explores the effect of the strategic fit (tight-fit, minimal-fit and non-fit) between business strategies and human resource (HR) practices on perceived organizational performance (POP). It also investigates the moderating role of firm size on strategic fit–performance linkage.
The data were gathered via an online survey from HR managers of companies listed in “Fortune-500 Turkey, ISO-Top and Second-Top 500”. The form was distributed to 669 organizations, and 102 of them responded. The data were analyzed using one-way ANOVA and moderation analysis.
No statistically significant difference was found in organizational performance according to different strategic fit categories. The moderating effect of firm size was not significant. Yet, tight-fit and minimal-fit appear to be linked to higher organizational performance. The results reveal that business strategies aligned with HR practices could have a favorable impact on organizational performance.
The study differs from previous studies in terms of methodology, the conceptualization of strategic fit categories, the nature of the sample and non-Western origin.
