Single- and Multiple-Informant Research Designs to Examine the Human Resource Management-Performance Relationship

During the last decades, many empirical studies have analysed the relationship between human resource management and firm performance. Despite the call for multiple‐rater designs, a relatively large number of researchers still rely on survey responses provided by a single informant in each organization. Single‐informant designs suffer from a number of problems, especially when the responses provided by different types of raters across firms are pooled into a single dataset prior to assessing their equivalence across raters. Using an illustration of the relationship between high performance work systems and firm performance, in this paper we observe that responses provided by managers holding different positions (human resource managers and sales managers) differ significantly and therefore pooling their responses into a single dataset may result in confusing conclusions. Furthermore, we demonstrate that differences arise in the estimated parameters when a multiple‐key‐informant approach, compared to a single‐informant design, is adopted. For these reasons, data collection using multiple key informants is recommended, based on the assumption that some raters in the firm will be more knowledgeable about the variables of interest than others.