Abstract

This study investigates the interaction effects of two business strategies and human resource management practices on employee outcomes. These relationships are further analyzed on the extent of differences between public and private limited companies in Malaysia. Structural equation modelling is used to examine the effect of the three variables and the invariance effect of the two types of companies. The results show that HRM practices mediate the interaction of business strategy and employee outcomes. Furthermore, the effects of business strategy and HRM practices on employee outcomes in public limited companies are only slightly different from the ones implemented in private limited companies. Specifically, the moderation analysis shows invariance between differentiation strategy and variance in low-cost strategy.