article anotated

OR I G I N A L A R T I C L E

The “HR–line-connecting HRM system” and its effects on employee turnover

Sunghoon Kim1 | Zhong-Xing Su2 | Patrick M. Wright3

1UNSW Business School, University of New

South Wales, Sydney, Australia

2School of Labor and Human Resources,

Renmin University of China, Beijing, China

3Darla Moore School of Business, University

of South Carolina, Columbia, South Carolina

Correspondence

Zhong-Xing Su, School of Labor and Human

Resources, Renmin University of China,

No. 59, Zhongguancun Street, Beijing,

100872, China.

Email: suzhongxing@ruc.edu.cn

Funding information

National Natural Science Foundation of China,

Grant/Award numbers: Project No: 71272157,

71472178

Although the importance of positive, trusting, and cooperative relations between HR profes-

sionals and line managers has been well documented, little is known about how organizations

can systematically nurture such relationships. This article specifies the “HR–line-connecting

HRM system,” which consists of a bundle of HRM practices designed to improve the relation-

ship between HR and line managers. Drawing on the social capital perspective and HR strength

theory, we propose that such HRM practices develop HR managers' social networks with line

managers and facilitate the formation of a shared language between them, which should in turn

result in low employee turnover. Our theory is generally supported by empirical analyses on

data from Chinese high-tech firms.

KEYWORDS

HR–line-connecting HRM system, shared language, social capital, social network,

strategic HRM

1 | INTRODUCTION

Strong social bonding between HR professionals and line managers

is indispensable for successful implementation of HRM policies

(Brewster, Gollan, & Wright, 2013; Farndale & Kelliher, 2013;

Kim & Ryu, 2011; Renwick, 2003; Ryu & Kim, 2013; Sanders &

Frenkel, 2011). Research suggests that positive, trusting, and coop-

erative relationships between HR professionals and line managers

could generate a strong HRM climate (Bowen & Ostroff, 2004)

and thereby lead to positive outcomes such as enhanced employee

performance (e.g., Alfes, Shantz, Truss, & Soane, 2013), effective

work–life balance programs (McCarthy, Darcy, & Grady, 2010), and

the expedited adoption of advanced production systems (Gollan,

Kalfa, & Xu, 2015). Although the organizational benefits of positive

HR personnel–line manager relations are well understood, little is

known about how organizations can systematically nurture and

develop such relationships. The literature has predominantly

treated HR–line relations as an exogenous variable, and its ante-

cedents have received surprisingly limited attention. This is an

unfortunate omission, as practitioners need to know how to

facilitate close working relationships between line managers

and HR professionals (e.g., Conaty & Charan, 2010; Ulrich &

Brockbank, 2005).

Our study fills this gap by investigating an antecedent of collabo-

rative relations between HR professionals and line managers. Specifi-

cally, we have identified a set of HRM practices that could

systematically promote social interaction and collaboration between

HR specialists and line managers. This bundle of HR practices, which

we have termed the HR–line-connecting human resource management

(HRM) system, consists of practices that can enhance the collaborative

capacity and motivation of line and HR managers to cooperate, as

well as provide them with opportunities to work side by side. Draw-

ing on social capital theory and HR strength literature, we assert that

the HR–line-connecting HRM system enhances the strength of the

HR climate by influencing intraorganizational social networks and

shared cognitive mental models, thereby improving employee

outcomes.

Our study on the HR–line-connecting HRM system is in line with

the growing interest in HRM literature about HR subsystems that tar-

get specific organizational goals (Jackson, Schuler, & Jiang, 2014).

Traditionally, HRM scholars have focused on general HRM systems

(such as high-performance work systems) and their impacts on

generic organizational performance (Huselid, 1995; Jackson et al.,

2014; Lepak, Liao, Chung, & Harden, 2006). Despite its merits and

influences, this approach has been the subject of debate. For

instance, P. Wright and Sherman (1990), in exploring the lack of

DOI: 10.1002/hrm.21905

Hum Resour Manage. 2018;57:1219–1231. wileyonlinelibrary.com/journal/hrm © 2018 Wiley Periodicals, Inc. 1219

empirical support for the “fit” between HRM practices and strategy,

noted that part of the problem stems from the use of generic HRM

practices rather than the “products” of those practices, namely, what

the HRM practices were designed to build or elicit. Recently, HR

researchers have shown increasing interest in narrowly specified sets

of HRM practices or “strategically targeted” HRM systems (Jackson

et al., 2014, p. 11). In this emerging research stream, scholars found

that organizations could orient their HRM systems toward strategic

objectives such as organizational flexibility (Chang, Gong, Way, & Jia,

2013), positive teamwork (Chen, Tang, Cooke, & Jin, 2016; Chuang,

Jackson, & Jiang, 2016), customer service (Jiang, Chuang, & Chiao,

2015) and transformational leadership (Han, Liao, Taylor, & Kim,

2017). Our study advances this literature on strategically targeted

HRM systems by identifying an HR subsystem that is specifically

designed to develop social relationships and collaboration between

HR professionals and line managers.

This study also contributes to the literature by examining impor-

tant HRM issues in the context of the fast-emerging Chinese high-

technology sector. The Chinese economy is transitioning from a low-

cost manufacturing-based economy to a technology-based one. This

shift from an imitation-oriented to an innovation-driven economy has

received much attention in the literature, as it has substantial implica-

tions for Chinese society as well as the global economy (Lewin, Ken-

ney, & Murmann, 2016). In this period of transition, Chinese high-

technology companies are facing serious HRM challenges due to their

underdeveloped management systems. Indeed, one of the crucial

HRM challenges in Chinese high-technology businesses such as Inter-

net companies is the noticeably high employee turnover rate, which

is in excess of 35% (Aon Hewitt, 2016). The retention difficulties in

the industry are further illustrated in a recent report by Bentote and

King (2016) showing that 70% of Chinese employees intend to leave

their current jobs. By identifying a strategic organizational interven-

tion to guide the behaviors of two major HR actors (herein, HR pro-

fessionals and line managers) and examining its impact on employee

turnover, our findings could provide theoretical insights as well as

practical suggestions on the management of Chinese high-technology

companies.

2 | THEORETICAL BACKGROUND AND HYPOTHESES DEVELOPMENT

2.1 | HR–line-connecting HRM system and HR managers' social networks

The main aim of this study is to identify a set of organizational

practices (which we will refer to as the “HR–line-connecting

HRM system”) that could bring about positive organizational out-

comes (see Figure 1 for the overall conceptual model). We define the

HR–line-connecting HRM system as a set of HRM practices intended

to build positive relationships between HR personnel and line man-

agers by enhancing their relational abilities, increasing their motiva-

tion to collaborate, and providing opportunities for them to know

each other and work together. In what follows, we explain the major

elements of the HR–line-connecting HRM system with the ability–

motivation–opportunity (AMO) framework, which is a well-received

theoretical lens that has frequently been employed in society human

resource management (SHRM) research (Appelbaum, et al., 2000;

Lepak et al., 2006; Paauwe, 2009).

First, organizations can use the HR–line-connecting HRM system

to improve the abilities of HR professionals and line managers to

interact with one another and to work more effectively together. On

the one hand, organizations can attempt to enhance HR profes-

sionals' ability to understand the daily business needs of, and thereby

improve their communication with, line managers. This goal can be

achieved by emphasizing business-related knowledge and experience

in recruiting and promoting HR professionals, encouraging cross-

department job rotations that provide HR personnel with opportuni-

ties to build firsthand experience with various business activities, and

providing HR personnel with training programs specifically aimed at

developing cooperative skills targeting non-HR people. On the other

hand, organizations can enhance line managers' abilities to work with

HR people by providing them with training programs on HR subjects

and promoting line managers who have demonstrated effective HR

skills and accumulated relevant experience. In summary, such organi-

zational efforts will equip HR and line managers with overlapping

knowledge, skills, and abilities (KSAs) that can facilitate social interac-

tion and collaboration between them.

Second, organizations can use the HR–line-connecting HRM sys-

tem to incentivize HR and line managers to interact and collaborate

with one another. For instance, companies can motivate HR person-

nel to actively collaborate with line managers by linking their pay to

the performance of other business units or by including line man-

agers' evaluations in the performance metrics of HR personnel. Orga-

nizations can also motivate line managers to collaborate with HR

personnel by formally assessing line managers' involvement in HR

activities (e.g., staffing, training, evaluation, and motivating subordi-

nates) or through promotion policies that prioritize line managers

with extensive knowledge and skills in HRM. By means of such HRM

policies and practices, the HR–line-connecting HRM system can

encourage HR and line managers to engage more actively with one

another.

Third, organizations can use the HR–line-connecting HRM sys-

tem to provide HR and line managers with additional opportunities to

interact with one another. For instance, organizations can design

work processes that require cooperation between HR and line man-

agers. Organizations can also use formal information-sharing meet-

ings between HR and line managers or sponsor social events in which

FIGURE 1 Conceptual model

1220 KIM ET AL.

HR and line managers can become acquainted. These types of organi-

zational arrangements can provide a platform through which HR and

line managers can readily communicate and interact with one

another.

We argue that an immediate consequence of adopting the HR–

line-connecting HRM system is the creation of a strong social net-

work between HR and line managers. A social network can be

defined as a relatively stable system of social relationships between

actors (Burt, 1997; Leana & Van Buren, 1999; Nahapiet & Ghoshal,

1998; Tsai & Ghoshal, 1998; Wellman & Berkowitz, 1988), which is

typically characterized by its density, frequency, and closeness

(Collins & Clark, 2003; Granovetter, 1973; Pil & Leana, 2009). The

density of a social network depends on the number of established

linkages among the social actors. Frequency refers to the rate of

interaction occurrence among the relevant actors. Closeness is

reflected in the intensity of emotional affinity among the actors.

Scholars have highlighted the importance of an organization's

rules, procedures, and policies in forming employee social networks

(Liebeskind, Oliver, Zucker, & Brewer, 1996). More specifically,

scholars have proposed and tested the importance of the role of

HRM in formulating social networks within firms (Collins & Clark,

2003; Kaše, Paauwe, & Zupan, 2009; Leana & Van Buren, 1999).

Thus, as this is a specific HRM system designed to advance abilities,

motivations, and opportunities for social interaction and collaboration

between HR professionals and line managers, we argue that the HR–

line-connecting HRM system can help develop a social network

between HR and line managers. Based on these arguments, we pro-

pose our first hypothesis:

Hypothesis 1: The HR–line-connecting HRM system is

positively related to the social network between HR and

line managers.

2.2 | Social network and shared language between HR professionals and line managers

In recent decades, social capital and interpersonal trust within the

firm have received considerable attention in the management litera-

ture as mechanisms that bring about positive organizational out-

comes, especially in the context of the knowledge-intensive business

sector (Inkpen & Tsang, 2005; Leana & Van Buren, 1999; Xiao & Tsui,

2007). Social capital refers to the goodwill available to individuals or

groups that emanates from the structure and content of people's

social relations (Adler & Kwon, 2002, p. 23). As the structural source

of social capital, social networks provide the foundation for people to

trust, cooperate, and perform collective activities (Coleman, 1988;

Kwon & Adler, 2014; Nahapiet & Ghoshal, 1998; Putnam, 2001).

When people are socially connected, they are likely to develop com-

mon cognitive ground for communication, which is crucial for building

a productive social context for knowledge exchange and knowledge

creation (Chiu, Hsu, & Wang, 2006; Lane & Bachmann, 1998; Naha-

piet & Ghoshal, 1998; Szulanski, 1996; Tsoukas & Vladimirou, 2001).

When people within a firm hold common cognitions (Lane & Bach-

mann, 1998; Timming, 2010), these cognitions result in a “shared

language” that enables valuable knowledge to be easily exchanged

and mutual consensus to be readily reached (Levin, Whitener, &

Cross, 2006; Nahapiet & Ghoshal, 1998; Tsai & Ghoshal, 1998).

Developing a shared language is particularly important for collab-

oration between HR professionals and line managers. Having been

trained in different occupational domains and working for different

organizational functions, HR and line managers tend to develop diver-

gent cognitive frameworks. Therefore, HR professionals and line

managers often “operate in very different worlds, and communication

between the two can be lost in translation” (McGee, 2008). For

instance, many HR professionals have difficulty collaborating with

finance managers because of an inability to speak the “language of

finance,” while finance professionals are not familiar with the “lan-

guage of talent” (Higgins, 2014). When they are not equipped with a

shared language, HR and line managers lose valuable opportunities to

collaborate toward common organizational goals (Boudreau &

Ramstad, 2005).

Studies have shown that a strong social network is correlated

with shared mental models among members of an organization

(Edelman, Bresnen, Newell, Scarbrough, & Swan, 2004; Hatzakis,

Lycett, Macredie, & Martin, 2005). Scholars have also argued that

social networks provide the foundation for social affairs, mutual trust,

and common vocabularies (Bourdieu, 1986). According to Tsai and

Ghoshal (1998), social interaction between different business units is

conducive to shaping common cognitive frames among organizational

members. Social ties promote the exchange of knowledge within net-

works and thus help develop a common understanding of the world

(Karahanna & Preston, 2013; Lee, 2009). Building on such findings

and arguments, we suggest that the social network between HR pro-

fessionals and line managers will allow them to develop common cog-

nitive ground and a shared language. We thus propose the following:

Hypothesis 2: The social network between HR profes-

sionals and line managers is positively associated with

their shared language.

2.3 | HR–line-connecting HRM system and employee turnover

SHRM research has long investigated how firms' HRM arrangements

influence organizational outcomes such as the employee turnover

rate (Arthur, 1994; Batt, 2002; Batt & Colvin, 2011; Combs, Liu,

Hall, & Ketchen, 2006; Delery & Doty, 1996; Huselid, 1995; Shaw,

2011). The main aim of this body of research is to identify a set of

HRM practices that can generate positive organizational dynamics

and lead to enhanced firm performance (Batt, 2002; Batt & Colvin,

2011; Huselid, 1995; Shaw, 2011). In line with this aim, a number of

studies have examined generalized HRM systems such as high-

involvement, high-commitment, and high-performance HRM systems

(Combs et al., 2006, Huselid, 1995). In recent years, scholars have

been trying to expand the literature by exploring specialized HRM

systems that are designed to address particular organizational goals,

such as flexibility-oriented HRM (Chang et al., 2013) and HRM

KIM ET AL. 1221

systems for knowledge-intensive teamwork (Chuang, Jackson, &

Jiang, 2016).

Another major goal of the literature on HRM and firm perfor-

mance is to delineate the mediating mechanisms between the two. In

this stream of research, growing attention has been given to the role

of social and cognitive processes through which employees interpret,

enact, and reconstruct their firm's HRM practices (Farndale & Kelli-

her, 2013; Nishii, Lepak, & Schneider, 2008; Piening, Baluch, & Rid-

der, 2014; Purcell & Hutchinson, 2007). A key suggestion in this

literature is that different organizational members (e.g., employees,

line managers, and HR managers) may come to formulate diverging

ideas and perceptions about their company's HRM arrangements, and

that such discrepancy and confusion within a firm could seriously

undermine the overall effectiveness of the HRM system. Along this

line of reasoning, HR strength theory (Bowen & Ostroff, 2004) posits

that the effectiveness of the HRM system depends on the “strength”

of the organizational climate in which employees receive clear, unam-

biguous, relevant, and consistent messages through corporate HRM

policies. Empirical studies have confirmed that when employees work

under a strong HR climate, they are likely to be happier in their jobs,

more committed to their organization, and less likely to leave their

company (Alfes et al., 2013; Kehoe & Wright, 2013; Sanders, Ship-

ton, & Gomes, 2014).

Drawing from HR strength theory, we argue that an HR–line-

connecting HRM system would reduce the firm's turnover rate by

making line and HR managers collaborate effectively in building a

strong HR climate. According to HR strength theory, a shared cogni-

tion or “consensus” between principal HR actors (such as HR profes-

sionals and line managers) is a central feature of a strong HR climate

(Bowen & Ostroff, 2004).

A high level of consensus between HR professionals and line

managers contributes to a strong HR climate in at least three ways.

First, when HR specialists and line managers have a good level of

consensus, employees receive the same kinds of HR-related mes-

sages from multiple actors. This multiplicity of message senders

enables employees to become more cognizant of a firm's intended

HR messages. The visibility and noticeability of HR messages is an

important precondition for a strong HR climate.

Second, when HR professionals and line managers share a com-

mon language and thereby freely exchange tacit knowledge on peo-

ple management, they are more likely to formulate HRM practices

that are relevant to the needs and concerns of employees. A frequent

flow of knowledge from HR professionals to line managers will pre-

vent HRM implementation from being “lost in translation” at the

hands of line managers (Bartram, Stanton, Leggat, Casimir, & Fraser,

2007). An unrestrained information flow from line managers will help

HR professionals formulate HRM practices that are relevant to the

strategy of the organization as well as the needs of employees

(Whittaker & Marchington, 2003).

Third, when HR professionals and line managers agree and

deliver consistent HR-related messages to employees, they can mutu-

ally enhance their legitimacy and credibility as HR actors in the eyes

of employees and therefore enhance employees' willingness to sub-

mit to the firm's requirements, which is also a crucial element of a

strong HR climate (Bowen & Ostroff, 2004). Thus, the shared

language and consensus between HR professionals and line managers

is likely to build a strong HR climate that results in better HRM out-

comes such as a low turnover rate. Such a relationship implies that an

HR–line-connecting HRM system would influence a firm's employee

turnover rate by way of the social network and shared language

between HR professionals and line managers.

Although our theorization has not been tested in previous stud-

ies, existing evidence corroborates our reasoning. Den Hartog,

Boon, Verburg, and Croon (2013) found that employees are more

likely to be satisfied when their line managers can help them appre-

ciate their company's HRM practices. Bos-Nehles, Van Riemsdijk,

and Looise (2013) found that employees are more satisfied when

their line managers are well informed in HR matters. Frenkel,

Sanders, and Bednall (2013) reported that when HR professionals

and line managers have cooperative relations, employees demon-

strate low turnover intentions. Furthermore, ample evidence sug-

gests that HRM practices aiming to promote positive relationships

within a firm are likely to reduce the employee turnover rate

(e.g., Batt & Colvin, 2011; Combs et al., 2006). Building on these

studies, we propose the following:

Hypothesis 3: The social network and shared language

between HR professionals and line managers mediate

the negative association between the HR–line-

connecting HRM system and the employee turn-

over rate.

3 | METHODS

3.1 | Sample and research procedures

We chose the information technology (IT) sector for our empirical

context. The Chinese IT industry is an economic sector that has

received much attention due to its growing influence in the global

market. In addition, it provides an attractive context for strategic HR

research. In China, companies in the IT sector are facing a high level

of competitive pressure. In response, many IT companies are actively

seeking sophisticated and novel HRM practices to get ahead of the

competition (Li, Zhao, & Liu, 2006). Furthermore, government regula-

tions on the labor market are loosely enforced on IT companies in

China (Kim & Chung, 2016). Consequently, a significant degree of

cross-organizational variance in HRM practices and outcomes can be

readily observed in this sector. This means that the Chinese IT sector

offers good opportunities to examine the adoption and consequences

of a new type of HRM system.

We collected our data from companies located in Zhongguancun,

Beijing, China. Zhongguancun is a special district heavily populated

with high-technology firms and often compared to Silicon Valley

(Tan, 2006). In July 2012, we obtained a list of HR managers working

in IT companies with the help of the Beijing Zhongguancun IT Profes-

sional Association. We contacted the HR managers of 262 listed

firms by telephone or through site visits and invited their companies

to participate in our research. When they agreed to participate, we

sent them web links to the questionnaires via e-mail. We sent these

1222 KIM ET AL.

web links to 146 companies, along with survey instructions, an assur-

ance of confidentiality, and a cover letter presenting the purpose of

the study. One month later, we sent out reminders to the companies

that had not yet returned the questionnaires. Eventually, 123 compa-

nies returned the questionnaires. Specifically, we obtained 123 HR

managers' responses from 123 companies, 263 line managers'

responses from 83 companies, and 602 employees' responses from

83 companies.

To reduce the concern of endogeneity and common method bias

regarding single-source measurements (Gerhart, Wright, McMahan, &

Snell, 2000), we constructed independent, mediating, and dependent

variables from different data sources: HRM practices, social network,

and firm characteristics from HR managers; a shared language from

line managers; and the lagged turnover rate from the end of 2013

from the companies' archives. The matching of the data from HR

managers (HR–line-connecting HRM system and social network) and

line managers (shared language) reduced the sample size to 79. The

archival data of the one-year lagged turnover rate forced us to use a

further reduced sample of 34.1

To ensure the representativeness of our sample, we obtained

information about the overall characteristics of IT companies in the

region from the Beijing Statistical Bureau and compared them to the

characteristics of our final sample. In terms of ownership distribution,

65% of our final sample was privately owned, while 70% of firms in

the population data are privately owned. The mean values of firm age

and firm size in our sample are not significantly different (p > .10)

from those of overall IT industry in Beijing. This suggests that our

sample may not significantly misrepresent the population. We con-

ducted our survey in Chinese. For items that were originally written

in English, we followed the translation/back translation procedure

(Brislin, 1990), involving two experienced scholars who are proficient

in both English and Chinese.

We tested the hypothesized relationships by employing struc-

tural equation modeling (SEM) path analysis using Stata 14. The SEM

path analysis produced indicators of overall model fit and path coeffi-

cients. To further examine the proposed mediation model (with two

serial mediators), we employed bootstrapped regression-based path

analyses using Process software (Hayes, 2013).

3.2 | Measures

3.2.1 | HR–line-connecting HRM system

We developed the “HR-line-connecting HRM system” measure fol-

lowing the AMO framework. To generate theoretically valid and

contextually relevant measurement items, we consulted multiple

scholars of HRM and conducted on-site interviews with HR and line

managers in IT companies in Zhongguancun. The measure consists

of 14 HRM practices aimed at enhancing the abilities

(e.g., “Company provides line managers with HRM-related training

programs” and “Company provides HR personnel with training on

how to build good relationships with non-HR departments”), motiva-

tion (e.g., “HR personnel's financial rewards are linked to the perfor-

mance of other business departments” and “Line managers with

good HRM skills and experiences are more likely to be promoted in

my company”), and opportunities for interaction and collaboration

between HR professionals and line managers (e.g., “Company orga-

nizes formal information-sharing meetings and/or sponsors social

events for HR personnel and line managers to become better

acquainted” and “Work processes are designed in such a way that

cooperation between HR managers and line managers is necessary”).

Details of the items are presented in the appendix. A 5-point Likert

scale ranging from 1 = strongly disagree to 5 = strongly agree was

used for all items.

We created a formative measure of the HR system by treating

the 14 items as additive indices and averaging them. A formative

measure is a well-received methodological approach to constructing

an HR system index (Batt, 2002; Batt & Colvin, 2011; Shaw, Dineen,

Fang, & Vellella, 2009; Shaw, Park, & Kim, 2013). A formative com-

posite index, unlike a reflective measure, does not assume a high

level of correlations among the items; therefore, internal

consistency–based psychometric tests such as Cronbach's alpha are

not relevant (Viswanathan, 2005).

3.2.2 | HR managers' social network with line managers

Following the multidimensional view of social networks in the litera-

ture (Collins & Clark, 2003; Granovetter, 1973; Pil & Leana, 2009),

we measured the three features of social networks: size, frequency,

and closeness of the social relations between HR professionals and

line managers. For network size, we asked the HR managers to

report the number of line managers (department-level managers)

with whom they have good relationships (1 = almost none,

7 = almost all). To measure the frequency of the social network, we

asked the HR managers to report how often they connect with line

managers within a week (1 = 0–2 times, 2 = 3–5 times, 3 = 5–10

times, 4 = 10–20 times, 5 = 20–30 times, 6 = 30–40 times, 7 = more

than 40 times). The closeness of the social network was measured

by asking “How close do you feel when you discuss questions with

department-level line managers?” (1 = not at all close, 7 = very

close).

3.2.3 | Shared language between HR professionals and line managers

Following Collins and Smith (2006), we measured the shared lan-

guage between HR and line managers with three items: “When

working with HR (line) department managers, we seem to be famil-

iar with each other's expertise”; “When talking about work with

HR (line) department managers, we are always on the same page”;

and “We do not have any trouble understanding one another

when talking about work with HR (line) department managers.” In

the survey, we asked both HR managers and department-level line

managers to evaluate the shared language with their counterparts;

the answers from the two sources showed a high level of

correlation.

In the analyses, we used the shared language data obtained from

line managers to minimize the inclusion of variables from the same

data source in one equation (the results were essentially the same

regardless of which data we chose to include in the analyses). Cron-

bach's alpha for the shared language measure was .94. The explor-

atory factor analysis showed that all three items had a clear single-

KIM ET AL. 1223

factor structure with factor loadings higher than 0.50, which

explained 87.85% of the total variance. In each firm, an average of

3.17 (range = 1–10) department-level line managers answered the

question on shared language. We aggregated the line managers'

answers into a firm-level variable. We checked the intraclass correla-

tions (ICCs; Shrout & Fleiss, 1979) and interrater agreement within

groups (rwg; James, Demaree, & Wolf, 1984). The ICC (1) was 0.34,

the ICC (2) was 0.56, and the average of the rwg was 0.93

(range = 0.75–1.00), which justified the data aggregation from the

individual to the organizational level (Bliese, 2000; Klein &

Kozlowski, 2000).

3.2.4 | Employee turnover

We captured employee turnover at the firm level using the compa-

nies' archival sources. The annual turnover rate was calculated as the

yearly turnover figure divided by the total number of employees

employed during the year. To ensure the temporal precedence of the

predictor variables, we obtained the archival turnover rate of the end

of 2013, thus making it the one-year lagged data of the dependent

variable. We used the overall turnover rate without differentiating

between the voluntary and involuntary rate. In today's Chinese IT

industry, the overall turnover rate is very close to the voluntary turn-

over rate because the supply of IT professionals does not meet the

demand, and involuntary turnover is negligible. The archival data we

obtained on both overall and voluntary turnover confirmed this

phenomenon.

3.2.5 | Control variables

We controlled for the major organizational characteristics including

company age, size, and ownership. Company age was represented

by the number of years since the company's legal establishment.

Company size was constructed using the number of full-time

employees, applying a natural logarithmic transformation in consid-

eration of its skewness. Company ownership was captured by a

dummy variable (private = 1). We did not control for the industry

because all participating companies were from one industry (the IT

industry).

TABLE 1 Means, standard deviations, and correlations

M SD 1 2 3 4 5 6 7 8

1. HR-line-connecting HRM 3.44 0.72

2. Social network size 4.50 1.99 –.13

3. Social network frequency 4.21 1.79 –.00 .43**

4. Social network closeness 5.24 1.02 .42** .27 .11

5. Shared language 3.60 0.90 .38** .18 .22 .50***

6. Turnover rate (lagged) 16.39 8.94 –.20 –.19 –.21 –.24 –.43**

7. Firm size (log) 2.30 0.80 –.07 –.24 –.24 –.18 –.11 .16

8. Firm age 10.32 5.54 –.25 –.10 –.00 –.19 –.21 –.04 .65***

9. Private ownership 0.65 0.49 –.30 .29 .30 –.26 .03 –.04 –.24 –.22

Note: N = 34 firms.

*p < .05; **p < .01; ***p < .001.

FIGURE 2 Path model with coefficients. Standardized coefficients are presented. *p < .05; ** p < .1 (two-tailed). Dashed lines are paths of

nonsignificance or controls

1224 KIM ET AL.

4 | RESULTS

Table 1 presents the means and standard deviations of all variables,

as well as the correlations among them. Consistent with our theoriza-

tion, HR–line-connecting HRM system was positively related to HR

managers' social network with line managers (network closeness),

although its correlations with two other dimensions of the social net-

work (size and frequency) were not statistically significant. Network

closeness was significantly correlated with the shared language

between HR professionals and line managers, and the shared lan-

guage had a significant negative correlation with the turnover rate.

HR–line-connecting HRM system had a negative but statistically non-

significant correlation with the employee turnover rate. These results

are generally consistent with our hypothesized serial relationships

among HR–line-connecting HRM system, the social network between

HR and line managers, their shared language, and employee turnover.

To examine our hypotheses, we conducted a path analysis using

SEM commands in Stata 14, with 1,000 bootstrapping iterations in

consideration of the small sample size. The path analysis technique is

a type of SEM without latent variables, and it is useful for testing a

model of multiple mediators. We hypothesized that an HR–line-

connecting HRM system would influence the social network between

HR professionals and line managers (Hypothesis 1), thereby develop-

ing a shared language between HR managers and line managers

(Hypothesis 2) and in turn influencing the employee turnover rate

(Hypothesis 3). As depicted in Figure 2, the results show that the

HR–line-connecting HRM system was related to social network

closeness between HR professionals and line managers (β = .42,

p < .05), and network closeness was related to the shared language

between HR and line managers (β = .49, p < .05). Therefore, Hypoth-

eses 1 and 2 are supported. However, unlike network closeness, two

other network variables (network size and network frequency) did

not show significant coefficients on the hypothesized paths. Finally,

the shared language between HR professionals and line managers

had a significant negative association with the firm's turnover rate

(β = –.45, p < .01). The overall path model showed a generally good

fit (root mean square error of approximation [RMSEA] = .064, com-

parative fit index [CFI] = .906, Tucker–Lewis index [TLI] = .843) and

explained 27% of the variance in the turnover rate (R2 = .27). There-

fore, Hypothesis 3 on the serial mediation of relationships is largely

supported.

To further verify the hypothesized model of serial mediations,

we employed the bootstrapping regression method suggested by

Preacher and Hayes (2008) and Hayes (2013). The bootstrapping

approach is a nonparametric resampling procedure that is particu-

larly useful in testing complex mediation hypotheses. This approach

is superior to conventional mediation tests such as the Sobel test,

especially when the sample size is not sufficiently large. Table 2 dis-

plays the results of indirect effects analyses that were conducted

on 5,000 bootstrapped samples (implemented by Process syntax

using SPSS version 24). In this methodological approach, the signifi-

cance of the indirect effect is assessed by the appearance of zero in

the confidence interval (CI) range. When the CI range does not

include zero, one can conclude that the possibility of having no indi-

rect effect is substantially low and that a significant indirect effect

exists.

The results of Model 1 suggest that HR-line-connecting HRM

system had an indirect effect on the firm's turnover rate through the

social network (network closeness) between HR and line managers

and the shared language between them (β = –.62, 95% CI

[–3.2783–.04]). When we ran bootstrapped models on alternative

causal pathways, the 95% CI ranges contained zero, suggesting that

such indirect causal pathways were not statistically significant. To

further verify the appropriateness of our causal ordering of variables,

we also tested indirect pathways that start with social network close-

ness; the results did not show significant outcomes. This provides

additional support for our theorization.

5 | CONCLUSION

This study proposes a new HRM system, HR-line-connecting HRM

system, and provides initial evidence for the positive organizational

consequences of its adoption. Our empirical analyses on Chinese

high-technology companies suggest that such strategically targeted

HRM systems can significantly reduce employee turnover by

TABLE 2 Bootstrapped indirect effect model comparison analyses

Indirect paths Indirect effect b

Bootstrapped SE

Indirect effects (bias-corrected 95% confidence interval)

1. HR–line HRM! Network closeness ! Shared language !

Employee turnover rate:

–.62 .56 95% CI [–3.27 –.04]

2. HR–line HRM! Network closeness ! Employee turnover rate:

–.97 1.25 95% CI [–4.47 .79]

3. HR–line HRM! Shared language ! Employee turnover rate:

–.92 1.22 95% CI [–4.30 .38]

4. Network closeness !HR–line HRM ! Shared language !

Employee turnover rate:

–.23 .34 95% CI [–1.63 .06]

5. Network closeness !HR–line HRM ! Employee turnover rate:

–.11 .84 95% CI [–2.68 1.01]

6. Network closeness ! Shared language ! Employee turnover rate:

–1.05 .84 95% CI [–3.70 .09]

Note: Results are based on 5,000 samples. All models contain control variables.

KIM ET AL. 1225

strengthening the social networks between HR managers and line

managers and by building a shared language between these parties.

5.1 | Theoretical and empirical contributions

This study contributes to the SHRM literature in several ways. First,

we identified HRM practices through which an organization can sys-

tematically build and improve social relations between HR profes-

sionals and line managers. Although a plethora of research has

advocated the strategic value of positive relations between HR pro-

fessionals and line managers (Brewster et al., 2013; Kim & Ryu, 2011;

Sanders & Frenkel, 2011), the literature has been largely silent about

how an organization can purposefully build such relations. Therefore,

the identification of the HR–line-connecting HRM system and its

organizational outcomes can significantly advance our understanding

of the antecedents and consequences of positive relations between

HR and line managers.

Second, our findings offer new theoretical insights on the relation-

ship between HRM and firm performance by proposing a strategically

targeted HRM system designed to promote social relations between

HR and line managers. Previous SHRM studies primarily examined the

effects of general HR systems such as high-performance and high-

commitment work systems (Combs et al., 2006; Huselid, 1995; Jiang,

Lepak, Hu, & Baer, 2012). Such approaches implicitly assume that the

practices are implemented to impact some global “performance” con-

struct. However, many HRM practices are implemented to drive more

specific outcomes such as employee engagement, strategic alignment,

or employee health and well-being. Recently, SHRM scholars have

begun to highlight the importance of investigating HRM systems

designed for specific objectives (Chang et al., 2013; Jackson et al.,

2014; Lepak et al., 2006). As Wright and Sherman (1999) noted,

research in strategic HRM may find more support for alignment

between practices and strategic objectives when they focus on the

desired outcomes, or “products” of those practices. Our study moves

this line of research forward by proposing a strategically targeted

HRM system designed to promote social relations between HR and

line managers as a means of reducing employee turnover.

Third, this study advances our understanding of the mediating

mechanisms between HRM and organizational outcomes by empiri-

cally testing the role of social capital in the form of two serial media-

tors (social networks and a shared language between HR

professionals and line managers) between the firm's HRM arrange-

ments and organizational outcomes. Uncovering the mediating mech-

anism between HRM and firm performance has been a major

scholastic endeavor in the SHRM literature (Jiang et al., 2012). In this

stream of research, a major concept that has received much attention

is the social capital within a firm. Many theorists have argued that

properly designed HRM systems are supposed to enhance organiza-

tional social capital, which will in turn enhance organizational out-

comes (Evans & Davis, 2005; Leana & Van Buren, 1999; Kaše et al.,

2009). Such a perspective, however, is often presented without sub-

stantial empirical evidence, partly due to the difficulty of collecting

social capital data across many companies.

In this study, we empirically showed that social capital does play

a mediating role between the firm's HRM arrangements and

organizational outcomes. In particular, we presented evidence that the

structural dimension of social capital (social networks) and cognitive

dimension of social capital (a shared language) mediate the relationship

between a strategically targeted HR system (HR–line-connecting HRM

system) and organizational outcomes (turnover rate). Although we can-

not claim that our study fully overcame the inherent empirical chal-

lenges related to research on HRM and social capital, future studies

could build on our findings and further examine the fine-tuned causal

mechanisms around social capital in the context of SHRM.

In addition, our study expands research on employee turnover by

examining the larger social context, particularly focusing on multiple

actors (HR professionals and line managers) that can potentially

impact employee turnover. Most research attempting to link HRM

practices to turnover examine the practices directly on employees

(Gardner, Wright, & Moynihan, 2011). Other research may focus on

the direct role of a supervisor in impacting employee intent to leave

and actual turnover. Our results show how focusing practices on

other actors (HR and line managers) can create an environment that

may be more attractive to employees, and thus, increasing their

desire to stay with the firm.

Finally, this study makes empirical contributions by examining

the impact of the HRM system on collective turnover in the Chinese

high-technology industry. The Chinese high-technology industry has

received growing attention in management research due to its grow-

ing influence in the global market (Lewin et al., 2016). Despite the

industry's notable rate of growth and impressive success stories,

companies in this sector are facing many challenging HR problems

such as an abnormally high employee turnover rate (Li et al., 2006).

HRM research on Chinese companies has traditionally focused on

labor-intensive industries such as manufacturing, retail, and hospital-

ity (Kim, Wright, & Su, 2010). Recently, scholars have begun to inves-

tigate HRM issues in the knowledge-intensive industry in China

(e.g., Bodla & Ningyu, 2017; Kesting, Song, Qin, & Krol, 2016). This

study contributes to this growing research stream by examining how

a social relations–oriented HRM practice could enhance firms' HRM

outcomes.

5.2 | Practical implications

This study provides many practical implications for firms seeking

ways to improve the effectiveness of their HRM. First, our findings

suggest that it is possible for a firm to systematically nurture the rela-

tionship between HR professionals and line managers. Building strong

and positive social relations within a firm is easier said than done.

Although most managers acknowledge the importance of social capi-

tal, not every manager is competent in the development of organiza-

tional social capital. In their Harvard Business Review article, Prusak

and Cohen (2001) pointed out that the nurturing of social capital

requires the company's intentional efforts to make connections

between organizational members. In this study, we proposed a spe-

cific set of organizational actions by which the social relations

between HR professionals and line managers can be systematically

nurtured.

Second, the identification of HR professional–line manager rela-

tions and their shared cognition as mediators between an HRM

1226 KIM ET AL.

system and organizational outcomes shows the strategic importance

of positive interactions between HR personnel and line managers. In

recent decades, devolving HRM responsibilities to line managers has

become a major trend across many countries (Ryu & Kim, 2013).

Although such HRM devolution may bring many benefits to organiza-

tions, it may also cause confusion, tension, and even conflict between

HR professionals and line managers (Sanders & Frenkel, 2011). While

HR managers may be reluctant to devolve their responsibilities to line

managers because they fear the loss of status and power (Purcell &

Kinnie, 2007), line managers may also lack the motivation (Harris,

2001; Kulik & Bainbridge, 2006), competence, and credibility

(Graham & Tarbell, 2006; Kulik & Perry, 2008; Ulrich & Brockbank,

2005) to fulfill such duties. A possible solution to these problems is

to introduce the HR–line-connecting HRM system and thereby sys-

tematically nurture the social capital between HR and line managers.

This would foster better communication, mutual understanding, and

trust, which are critical to improving the actual implementation and

effectiveness of various HRM practices.

In addition, this study provides insights regarding how organiza-

tions can narrow the gap between HRM planning and

implementation—which has long been one of the significant chal-

lenges in SHRM (Sanders et al., 2014). Scholars have emphasized that

the actual implementation and employee perception of HRM are

more likely to influence employee attitudes and behaviors than HRM

planning and policies (Bowen & Ostroff, 2004; Nishii et al., 2008;

P. M. Wright & Nishii, 2007). Studies have also shown that line man-

agers' involvement in HRM is critical to securing positive HR out-

comes (Brewster et al., 2013; Brewster & Larsen, 2000; Dany,

Guedri, & Hatt, 2008; Farndale & Kelliher, 2013; Purcell & Hutchin-

son, 2007; Ryu & Kim, 2013; Whittaker & Marchington, 2003). Our

findings suggest that organizations can systematically promote posi-

tive social relationships between line professionals and HR managers,

thereby improving the effectiveness of employee management.

Although this study does not directly address the issue of HRM

implementation, it does suggest that a firm's HR practices (such as

the HR–line-connecting HRM system) could generate a context in

which line and HR managers can better collaborate so that the firm's

HR practices can be effectively implemented.

Finally, our findings indicate that positive relations between HR

professionals and line managers can reduce employee turnover in the

context of the Chinese high-technology industry. High employee turn-

over is a major practical concern in China, especially in the high-

technology sector (Aon Hewitt, 2016). High employee turnover not

only incurs substantial replacement cost but also undermines organiza-

tional routines and hampers the accumulation of knowledge within the

firm (Batt & Colvin, 2011). Our findings suggest that Chinese high-

technology companies can reduce employee turnover by promoting

positive social dynamics between HR professionals and line managers.

5.3 | Limitations and future research

This study has limitations that can be addressed in future research.

First, we acknowledge that the generalizability of our findings can be

constrained by the specificity of the empirical context of the study.

We tested our theory in the Beijing-based high-technology industry

in China. Although our theory is applicable beyond this particular

empirical context, future studies will need to examine whether an

HR–line-connecting HRM program would bring out similar organiza-

tional outcomes in other contexts. Research has suggested that net-

work dynamics could vary depending on organizations' internal and

external environments (Jones, Hesterly, & Borgatti, 1997; Schilling &

Steensma, 2001). Therefore, it would be interesting to examine

whether our findings are equally valid for companies in the

manufacturing sector, whose intraorganizational dynamics would be

different from those of high-technology companies.

Second, although we conceptualized and measured social rela-

tions following a well-established approach, several alternatives exist.

In measuring social relations between HR professionals and line man-

agers, we focused on the size, frequency, and closeness of social ties.

This is arguably the most common way to capture the collective level

of the intraorganizational social network (Carr, Cole, Ring, & Blettner,

2011). However, studies have shown that the influence of HR prac-

tices on intraorganizational social relations can be represented in

other aspects of social networks, such as the instrumental/expressive

nature of social networks among organizational members (Dabos &

Rousseau, 2013) or employees' structural positions within intraorga-

nizational networks (Carboni & Ehrlich, 2013). We recommend that

future researchers explore diverse aspects of the social relations

between HR professionals and line managers.

Third, although our main dependent variable was lagged by one

year, our findings on causal pathways should be interpreted with cau-

tion. Given the challenge of collecting longitudinal data, a cross-

sectional design has been deemed acceptable in SHRM research.

Nevertheless, HR scholars are increasingly concerned about the prob-

lems involved in cross-sectional design, such as the possibility of

mutual causation (Becker & Huselid, 2006; Wright, Gardner, Moyni-

han, & Allen, 2005). Therefore, researchers need to further verify the

causality of our theoretical model by employing a longitudinal

research design. Future researchers can also try to utilize pre- and

postperformance measures to better establish the causality of the

model.

Fourth, this study relied on nonprobability sampling, although our

sample represents the population of the Beijing-based high-

technology sector reasonably well in terms of ownership, firm age,

and firm size. In China, strict probability sampling is extremely chal-

lenging to implement for an organizational-level study due to the near

impossibility of accurately specifying the sampling frame and the dif-

ficulty of getting access to companies. Therefore, SHRM scholarship

has been lenient on the use of nonprobability sampling methods such

as the snowball technique in the study of Chinese HRM (i.e., Sun,

Aryee, & Law, 2007). That acknowledged, future research needs to

address this limitation by collecting highly representative data. In

addition, we admit that the relatively small sample size of this study

could be a potential problem. Although we found support for our

hypotheses despite the challenge of finding significant results with a

small sample, we must recognize the possible problems in small-

sample research. The limited size of our sample could be a reason

why we did not see significant results for some of the hypothesized

relationships. Additional empirical studies with larger samples could

KIM ET AL. 1227

provide better insights on the nonsignificant relationships in our

study.

Fifth, this study focused on employees' collective turnover as a

firm-level outcome. Although employee turnover is one of the most

important indicators of firm-level outcomes in the HRM literature, its

impact on firms' bottom-line performance is still a subject of debate

(Hancock, Allen, Bosco, McDaniel, & Pierce, 2013; Heavey, Hol-

werda, & Hausknecht, 2013; Park & Shaw, 2013). While some have

argued that employee turnover is generally detrimental to companies

(i.e., Batt & Colvin, 2011), others have suggested that employee turn-

over may not always be dysfunctional (Hancock et al., 2013). There-

fore, future research could examine whether our theory can be

validated in relation to other outcome variables, including firms'

financial performance.

Finally, future research could investigate the relationships that

we theorized but did not empirically validate. We presumed that a

positive relationship between HR professionals and line managers

would bring about positive HR outcomes by strengthening the firm's

HR climate. However, our empirical model did not examine this medi-

ating mechanism of HR climate strength, partly due to the inherent

difficulty of collecting highly valid and reliable data on HR climate

emergence (Ostroff & Bowen, 2016). Future researchers could try to

address this limitation by building on recent developments in organi-

zational climate emergence (Fehr, Fulmer, Awtrey, & Miller, 2017;

Fulmer & Ostroff, 2016).

ACKNOWLEDGMENT

This research was funded by the National Natural Science Founda-

tion of China (Project No.: 71272157, 71472178).

NOTE

1We conducted additional tests with larger samples on Hypothesis 1 (n = 123) and Hypothesis 2 (n = 79), which essentially produced the same but partially better results. In the article, we report the most conservative results based on the sample of complete information.

ORCID

Sunghoon Kim http://orcid.org/0000-0002-4374-9332

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AUTHOR'S BIOGRAPHIES

SUNGHOON KIM is a Senior Lecturer at the University of

New South Wales, Australia. He received his PhD from Cornell

University. His research interests include HRM and labor rela-

tions in Asian emerging economies, international HRM, strategic

HRM, and migrant professionals. His work has appeared in vari-

ous journals including Organization Studies, Industrial and Labor

Relations Review, Human Resource Management, International

1230 KIM ET AL.

Journal of Human Resource Management, and Management and

Organization Review. He is a coeditor of The Routledge Handbook

of Asian HRM (2017).

ZHONG-XING SU is a Professor and Head of the Department

of Human Resource Management at the School of Labor and

Human Resources, Renmin University of China. His current

research interest focuses on strategic human resource manage-

ment, employee social networks, organizational ambidexterity,

and the best practices of Chinese companies. He has published

research papers in journals such as the Journal of Management,

International Journal of Human Resource Management, and Asia

Pacific Journal of Human Resources.

PATRICK WRIGHT is the Thomas C. Vandiver Bicentennial

Chair in the Darla Moore School of Business at the University of

South Carolina. He teaches, conducts research, and consults in

the area of strategic human resource management. He has pub-

lished over 70 research articles in leading academic journals and

over 20 chapters in books, and has edited volumes and coau-

thored two textbooks and two books on HR practice. From 2011

to 2017, he was named by HRM Magazine as one of the 20 “Most

Influential Thought Leaders in HR”; in 2014, he won SHRM's

Michael Losey Award for HR Research.

How to cite this article: Kim S, Su Z-X, Wright PM. The

“HR–line-connecting HRM system” and its effects on

employee turnover. Hum Resour Manage. 2018;57:

1219–1231. https://doi.org/10.1002/hrm.21905

APPENDIX

HR–Line-Connecting HRM

1. My company utilizes cross-department job rotation to expand

HR personnel business knowledge.

2. My company fills HR job openings with internal candidates from

other departments.

3. When my company recruits and selects HR specialists, candi-

dates' business experiences are highly valued.

4. My company provides line managers with HRM-related training

programs.

5. My company's work processes are designed in such a way that

cooperation between HR managers and line managers is

necessary.

6. My company organizes formal information sharing meetings

and/or sponsors social events for HR personnel and line man-

agers to become better acquainted.

7. In my company, HR personnel's financial rewards are linked to

the performance of other business departments.

8. In my company, line managers' evaluations are included in the

performance metrics of HR staff.

9. Line managers with good HRM skills and experiences are more

likely to be promoted in my company.

10. My company assesses line managers' performance in their

involvement with corporate HRM policy implementation.

11. My company makes visible efforts to develop working relations

between HR personnel and employees of other business

departments.

12. My company provides HR personnel with training on how to

build good relationships with non-HR departments.

13. My company provides money and resources for HR personnel to

develop working relationships with other business departments.

14. My company's HR professionals share knowledge about how to

cooperate with other business departments.

KIM ET AL. 1231