Revisiting the SHRM–Employee Behaviour Relationship: A Social Exchange Perspective on the Mediating Role of Affective Commitment

Abstract

Organisational effectiveness and performance are influenced by employee behaviour, but the impact of Strategic Human Resource Management (SHRM) on this behaviour is not well understood. This study explores the mediating role of affective commitment, using Social Exchange Theory to analyse how SHRM practices foster emotional attachment among employees, which then enhances their behavioural performance. A quantitative research design was used with survey data collected on 408 employees working in medium enterprises in India. Partial Least Squares Structural Equation Modelling (PLS-SEM) was used to test the hypothesised relationships and mediation effects. The results indicate that SHRM does not have a significant direct effect on employees’ behaviour. The SHRM however, has a great positive influence on the behaviour of employees who are greatly affected by affective commitment. The results prove that affective commitment is a complete mediator between SHRM and the behaviour of employees. The results imply that organisations need to go beyond the structural application of HR practices and concentrate on the promotion of emotional attachment to the employees. By focusing on fairness, organisational support and employee involvement can reinforce affective commitment and, therefore, enhance the behavioural and performance results. The work enhances SHRM research through a Social Exchange perspective, highlighting the role of affective commitment as a complete mediator. This approach shifts focus from direct effects to psychological processes, offering context-specific insights for medium enterprises in developing economies.