This study examines whether the relationship between strategic human capital management practices (HCMPs) and employee capability is moderated by personnel control mechanisms, and whether the relationship between employee capability and corporate performance is affected by an intervening variable, customer loyalty, and whether efficient development and effective deployment of strategic HCMPs act as leading indicators of corporate performance. The possible moderating and intervening relationships among four constructs — strategic HCMPs, persormel control mechanisms, employee capability and customer loyalty — are considered. Propositions concerning the moderating and intervening relationships among these constructs are made, and a LISREL model of their relationships to business performance is specified.