The impact of human resources practices on consumers’ investment intentions. A study in the financial sector
| DOI | https://doi.org/10.1108/ER-05-2016-0097 |
| Published date | 05 June 2017 |
| Date | 05 June 2017 |
| Pages | 475-486 |
| Author | Aristides I. Ferreira,Luis F. Martinez,Rosa I. Rodrigues,Carla Ilhéu |
| Subject Matter | HR & organizational behaviour,Industrial/labour relations,Employment law |
The impact of human resources
practices on consumers’
investment intentions
A study in the financial sector
Aristides I. Ferreira
Business School, ISCTE –Instituto Universitario de Lisboa, Lisbon, Portugal
Luis F. Martinez
Nova School of Business and Economics, Universidade Nova de Lisboa,
Lisbon, Portugal
Rosa I. Rodrigues
Department of Human Resources and Organizational Behaviour,
ISCTE –Instituto Universitario de Lisboa, Lisbon, Portugal, and
Carla Ilhéu
Department of Human Resources, British Embassy, Lisbon, Portugal
Abstract
Purpose –Research has shown that corporate policies affect customers’decisions. The purpose of this paper
is to focus on the influence of human resources (HR) practices on investmentintentions in the financial sector.
Design/methodology/approach –Data were obtained from 548 managers and management students.
Participants were presented real news regarding two banks with contrasting HR practices. Subsequently,
they had to choose –from a given virtual amount –their investment allocations.
Findings –Results primarily showed that participants decided to invest more money in the bank which was
more profitable to them, regardless of that bank’s HR practice. But, most importantly, when the news was
specifically addressed to the in-group (managers), participants decided to invest more money in the bank with
the HR practice by which they identified more, although being less profitable to them.
Originality/value –The findings demonstrate the urgency for organizations to manage effectively their HR
practices, as they serve as a vehicle to corporate reputation, thus affecting the relationship with the
stakeholders and investors’decisions.
Keywords Decision making, Consumer behaviour, Investment, Human resources practices
Paper type Research paper
Introduction
Attracting consumer preferences and investment intention requires organizations to portray
a positive image and attend to its strategy and objectives. This changing and emerging
process has a crucial impact on corporate reputation and, consequently, on stakeholders,
including investors, current customers and potential future consumers (Friedman, 2009).
Moreover, organizations’managers should consider the costs and benefits of their human
resources (HR) practices (Edmans, 2012; Huselid, 1995), as the stakeholders tend to look at
those practices and assess them as detrimental or beneficial for the organization and its
employees. Thus, it is vital to assess the impact of HR practices on investment intentions
and assure the sustainability of the business.
When an organization engages in a dismissal process, its intention is to permanently
reduce the size of its workforce (e.g. downsizing), which may not be necessarily associated
with low job performance. Especially after 2010, the International Monetary Fund and the
European Commission have been pressuring some southern Euro zone countries
(e.g. Greece, Spain and Portugal) to adopt strict austerity measures, thus giving rise to
Employee Relations
Vol. 39 No. 4, 2017
pp. 475-486
© Emerald PublishingLimited
0142-5455
DOI 10.1108/ER-05-2016-0097
Received 14 May 2016
Revised 19 January 2017
Accepted 21 February 2017
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0142-5455.htm
475
Impact of
human
resources
practices
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