Despite extensive research linking human resource (HR) practices and organizational performance, prior investigations primarily focused on static settings and cross-sectional comparisons, overlooking the evolving nature of external environments (e.g., crisis events), the turbulence of organizational performance based on environmental contingencies, and how HR practices shape such performance dynamics. Adopting the lens of dynamic capabilities, we investigate how HR practices influence firm performance trajectories during the pandemic crisis. We propose that pre-pandemic work-family HR practices, by enhancing routine flexibility and plasticity, enable organizations to maintain stability during the acute stage of the crisis. Conversely, pre-pandemic high-investment HR practices, which enhance employee skill and motivation, facilitate the generation of new routines that accelerate post-crisis recovery. We further examine capital intensity as a contingency that qualifies the effects of HR practices. In Study 1, we conducted a qualitative survey study with 83 managers across industries to facilitate theory building. In Study 2, we tested our hypotheses with a panel dataset of 2,597 firms with 40,057 firm-quarter observations, finding general support for our hypotheses. Our research contributes to the literatures on dynamic capabilities, strategic HR, and crisis management, shedding light on how firms may proactively manage employees to sustain performance despite exogenous shocks.
