[Extract] Most researchers agree that human resource (HR) practices affect attitudes and discretionary behavior on the job and that employee actions and motivations influence company performance. The academic literature also suggests that investing in employees, through high-commitment HR practices such as internal labor markets, selecting new employees who “fit” the company rather than a particular job, compensating employees on the basis of group and company results, and training and development programs that stress team building and long-term growth, are all indirectly related to organizational success. Missing from the literature is an exploration of the causal mechanisms that "mediate" between these HR practices and favorable outcomes for companies operating in dynamic environments; this research begins filling the void.