This study contributes to strategic human resource management (HRM) research by offering a contextualized model of HRM effectiveness. Building on HR attribution theory, we propose that the high commitment work system will be more effective in a context when: (i) employees are conditioned to trust employers and (ii) regulatory institutions are less restrictive, giving management more autonomy in human resource decisions. In such contexts, we argue that employees are more inclined to view the high commitment work system as an expression of the employer's genuine concern for employees. Hence, employees are more likely to reciprocate with high commitment. We find our contextualized HRM effectiveness model particularly useful in understanding HRM – firm performance relations in China where business environments are currently under transformation on both trust and regulations.
