Brand Equity and Strategic human Resource Management: Can Companies Bask in the Glory of their Brands?

Research and practical observations indicate that applicants are attracted to strong brand companies as they assume that these companies invest in them on the basis of strategic human resource management (SHRM). However, research has yet not analyzed whether companies meet these expectations (consistent behavior) or whether they leverage their brand to reduce their engagement in SHRM (compensatory behavior). Drawing on a unique panel data set we test these competing perspectives and demonstrate a negative influence of brand equity on SHRM. Results of residual analysis demonstrate that the observed behavior leads to the highest performance outcomes.