Dissertation Title:  THE IMPACT OF STRATEGIC HUMAN RESOURCE MANAGEMENT ON THE PERFORMANCE OF COMPANIES

Authors: Clara PRIFTI

• Institution: University of Tirana,  Faculty of Economics, Department of Management

• Field of study:  management

• Publication date: 24.06.2026

• The dissertation is published in Albanian.

© Copyright: Clara PRIFTI

Published by the University of Tirana
Based on legal acts, regulations and policies of the UT

👉 Click here to view the full dissertation (PDF)

 

Abstract

In the context of contemporary economic developments and the transformation of economies in transition, Human Resource Management is being consolidated as a key factor in increasing organizational performance and building long-term competitive advantage. However, the way in which HRM functions as an integrated system of practices and how it interacts with the organization's strategy, uncovering the black box, especially in developing economies and especially in the Albanian private sector, remains little studied. This study aims to address this research gap by analyzing the impact of Strategic Human Resource Management on organizational performance, through a systemic approach that includes the role of HRM, human resource management practices and their horizontal and vertical integration.

The aim of the study is to develop and empirically test a comprehensive conceptual model in the context of Albanian private businesses, which operationalizes Strategic Human Resource Management as a coordinated configuration of HRM roles and practices. The theoretical model is based on the Strategic Human Resource Management literature and strategic fit approaches, emphasizing that organizational performance is generated through the systemic functioning of HRM practices and their connection to the strategic objectives of the organization.

Empirical data were collected through structured questionnaires from executives and managers in private Albanian companies with over fifty employees and were analyzed through structural equation modeling, using the lavaan package in the R statistical environment. This methodological approach allows for testing direct and indirect relationships between the latent constructs of the model and assessing the functioning of the MSHRS as a system.

The empirical results confirm the importance of the company's strategy and the strategic approach to Human Resource Management in improving organizational performance, highlighting that the strategic architecture of HRM plays a central role in creating value for the organization. The role of HRM appears as an important mediating mechanism in this relationship, while human resource practices do not demonstrate a direct and consistent impact on performance. This suggests that the effects of Strategic Human Resource Management materialize mainly at the strategic and institutional level, rather than at the operational level of implementing practices, reflecting the structural, organizational and contextual specificities of Albanian businesses. The study contributes to the existing literature by providing empirical evidence from an understudied context and by expanding the understanding of the black box in transition economies. In practical terms, the findings provide guidance for managers of private organizations on building and strengthening integrated human resource management systems, aligned with business strategy.

Field: Human Resources Management

Keywords: Strategic Human Resource Management, Company Performance, HRM Practices, Role of Human Resources, HRM Results, Emerging Economy

 

 

Abstract

In the context of contemporary economic developments and the transformation of transition economies, Human Resource Management has increasingly consolidated its role as a key factor in enhancing organizational performance and building sustainable competitive advantage. However, the way in which HRM operates as an integrated system of practices and interacts with organizational strategy—often referred to as the "black box" problem—remains underexplored, particularly in developing economies and, more specifically, within the Albanian private sector. This study aims to address this research gap by examining the impact of Strategic Human Resource Management on organizational performance through a systemic approach that encompasses the role of HRM, HRM practices, and their horizontal and vertical alignment.

The primary objective of the study is to develop and empirically test a comprehensive conceptual model within the context of Albanian private businesses, which operationalizes Strategic Human Resource Management as a coordinated configuration of HRM roles and practices. The theoretical model is grounded in the Strategic Human Resource Management literature and strategic fit perspectives, emphasizing that organizational performance is generated through the systemic functioning of HRM practices and their alignment with the organization's strategic objectives.

Empirical data were collected through structured questionnaires administered to executives and managers in Albanian private companies employing more than fifty employees and were analyzed using Structural Equation Modeling with the lavaan package in the R statistical environment. This methodological approach enables the testing of both direct and indirect relationships among the model's latent constructs and the assessment of SHRM as a system.

The empirical findings confirm the importance of firm strategy and a strategic approach to Human Resource Management in enhancing organizational performance, highlighting that the strategic architecture of HRM plays a central role in value creation. The role of HRM emerges as a significant mediating mechanism in this relationship, whereas HRM practices do not demonstrate a direct and consistent impact on performance. These results suggest that the effects of Strategic Human Resource Management materialize primarily at the strategic and institutional levels rather than at the operational level of practical implementation, reflecting the structural, organizational, and contextual specificities of Albanian businesses. The study contributes to the existing literature by providing empirical evidence from an under-researched context and by advancing understanding of the "black box" of HRM in transition economies. From a practical perspective, the findings offer guidance for managers of private organizations on designing and strengthening integrated HRM systems aligned with business strategy.

Field of study: Human Resources Management

keywords: Strategic Human Resource Management, Company Performance, HRM Practices, Role of HR, HRM Outcomes, Developing Economy