This study investigates how Strategic Human Resource Management (SHRM) contributes to cultivating employee engagement and strengthening organizational performance within the context of Chinese enterprises. With the increasing influence of globalization and the acceleration of digital transformation, it has become essential for businesses in China to align their HR strategies with overarching organizational goals. This research seeks to empirically examine both the direct and mediated effects of SHRM on organizational success through the lens of employee engagement, employing a quantitative cross-sectional methodology. A total of 230 professionals from medium to large organizations across various Chinese industries participated in the study by completing structured questionnaires. The collected data were analyzed using a range of statistical methods, including descriptive analysis, reliability testing, Exploratory and Confirmatory Factor Analysis (EFA and CFA), correlation analysis, and Structural Equation Modeling (SEM). The findings reveal that strategic HR practices have a significant and positive effect on employee engagement, which, in turn, serves as a strong predictor of improved organizational performance. Furthermore, engagement was found to play a partial mediating role between SHRM and performance outcomes. This suggests that HR strategies are most effective when they also foster a sense of psychological involvement and commitment among employees. The study contributes to academic discussions by positioning employee engagement as a core mediating variable in the relationship between SHRM and organizational outcomes. It also highlights the importance of tailoring HR practices to fit the cultural and institutional dynamics of Chinese firms. From a practical standpoint, the research offers valuable insights for HR leaders aiming to design integrated systems that support strategic alignment while also fostering a productive and committed workforce.

Xiaohan Wang, Bochun Zhang. The Role of Strategic Human Resource Management in Driving Organizational Performance and Employee Engagement. Academic Journal of Business & Management (2026), Vol. 8, Issue 1: 188-197. https://doi.org/10.25236/AJBM.2026.080125.

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