Predicting HR's Involvement and Influence in Strategic Decision-Making **

Abstract

While it has become increasingly common to envision the HR function having an expanded role in business, we know little about the determinants of its strategic involvement and influence. Drawing on strategic contingencies theory (SCT) and institutional theory, a model for both constructs was developed and tested. Structural equation modeling (SEM) was used to analyze web-survey data from 167 firms in the U.S. and Canada. As predicted, HR coping ability, firm size, and human-capital munificence were positively related to strategic involvement. Strategic influence, in turn, was directly related to HR centrality and the level of involvement. Moderated regression analysis failed to support either of the hypothesized country effects. Implications for future research and management practice are discussed at the end of the article.