Assessing the Mediating Effect of Internal Communication on Strategic Human Resource Management and Perceived Performance: An Intersectoral Comparison

• Published date: 01 September 2022
• Date: 01 September 2022
• DOI: http://doi.org/10.1177/0734371X21994185
• Subject Matter: Articles

https://doi.org/10.1177/0734371X21994185

Review of Public Personnel Administration

2022, Vol. 42(3) 464 –491

© The Author(s) 2021

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DOI: 10.1177/0734371X21994185

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Article

Assessing the Mediating Effect

of Internal Communication

on Strategic Human

Resource Management and

Perceived Performance: An

Intersectoral Comparison

Jiwon Suh1 and Paul Battaglio2

Abstract

Using five waves of Korean Workplace Panel Survey (KWPS) data, we examine the

mediating effects of internal communication channels on the relationship between

strategic human resource management and organizational performance. Comparing

public, nonprofit, and for-profit organizations, we demonstrate significant sector

differences in communication. Our analyses show that only for-profit firms have

been able to tap into the advantages of internal communication channels in an effort

to improve the alignment between strategic human resource management and

perceptions of organizational performance. From the findings, we suggest that public

and nonprofit human resource managers may have a number of structural, cultural,

and knowledge barriers to effective communication.

Keywords

internal communication, strategic human resource management, performance, sector

comparison, mediating effects

Introduction

Organizations employ strategic management as a means for achieving organizational

goals and managing environmental challenges (Brown, 2010). To accomplish this,

1University of Texas at Arlington, Arlington, USA

2University of Texas at Dallas, Richardson, USA

Corresponding Author:

Paul Battaglio, University of Texas at Dallas, 800 West Campbell Road, WT17, Richardson, TX 75080-

3021, USA.

Email: battaglio@utdallas.edu

994185ROPXXX10.1177/0734371X21994185Review of Public Personnel AdministrationSuh and Battaglio

research-article2021

Suh and Battaglio 465

organizations should foster consistency between established strategies and other prac-

tices, such as those associated with human resource management (HRM). The concept

of strategic human resource management (SHRM) underscores alignment between

HR practices and organizational strategies to achieve organizational goals (Becker &

Huselid, 2009; Delery & Doty, 1996; Perry, 1993; Wright & McMahan, 1992). Thus,

all HR functions should align with specific strategies and coordinate practices across

the organization to ensure that HR practices promote strategy implementation.

To ensure alignment and coordination in organizational strategy, top management

and the human resource (HR) department must constantly communicate with internal

stakeholders (e.g., employees and other managers across the organization) regarding

strategies and related HR practices. Communicating with internal stakeholders—inter-

nal communication—is defined as “all formal and informal communication taking

place internally at all levels of an organization” (Kalla, 2005, p. 304). Internal com-

munication is an integral part of ensuring employees understand HR practices and

champion successful changes that ultimately lead to enhanced organizational perfor-

mance (Bowen & Ostroff, 2004; Den Hartog et al., 2013). This entails communication

between managers and employees within an organization via a number of channels,

including but not limited to dyadic face-to-face encounters such as group meetings or

one-on-one sessions, employee surveys, and intranet communication via email, office

newsletters, and memoranda.

Although a significant body of research underscores the importance of communica-

tion as a positive driver of organizational performance (Clampitt & Downs, 1993;

Farrell et al., 2012; Pincus, 1986; Schuler & Blank, 1976), the existing research falls

short in explaining the utility of internal communication channels in the relationship

between SHRM practices and organizational performance. Moreover, little is known

as to how communication may differ by sector and if these differences play a role in

the SHRM—performance relationship. Given that the adoption of SHRM in the public

and nonprofit sectors has failed to keep pace with similar efforts in the for-profit sector

(Akingbola, 2013; Den Hartog et al., 2013; Gould-Williams, 2004; Guo et al., 2011),

this research contributes to a broader understanding of how different communication

patterns across sectors strengthen the relationship between SHRM and organizational

performance.

In order to compare sector differences, we examine the attitudes of human resource

(HR) professionals in all three sectors. By employing the perceptions of HR profession-

als, our research provides an expert appraisal of the mediating effects of communication

on the relationship between SHRM and organizational performance in the public, non-

profit, and for-profit sectors. Specifically, this article examines two categories of internal

communication channels: vertical channels emanating from top management down to

employees and horizontal channels that occur across units internally.

The rest of this article is organized as follows. We begin with a literature review

that establishes our theoretical framework, including an outline of different communi-

cation patterns in public, nonprofit, and for-profit organizations. This is followed by

hypotheses, methods, and findings. The last section provides concluding remarks with

overall theoretical and practical implications for public service HRM.