Since 1996, the Research and Development (R&D) sector in Malaysia has received greater policy attention than before. Despite fiscal and non-fiscal incentives provided to support the growth of this sector, the level of R&D measured in terms of R&D outputs (i.e. number of patent) is still dismal which is mirrored in the overall performance of local R&D companies. Many studies have investigated factor which influence the performance of organizations. The present study attempts to examine the relationship between human resource management (HRM) practices and organizational performance of R&D firms based on contingency theory and resource based view. the moderating role of inter firm collaboration and environment on the relationship between HRM practices and organisational performance are studies. organisational performance was measured in terms of profitability. The data for then study were obtained from survey responses from 64 R&D companies. Results of EFA and CFA confirmed the 4 dimensions of HRM practices. Regression results showed participation and reward practices have positive and significant relation with organisational performance while training and development practice and has negative relation with organisational performance. there is no significant relationship between teamwork practice and organisational performance. Results also indicated that only collaboration in manufacturing significantly moderated the relationship between some of HRM practices and organizational performance. Other types of inter firm collaboration did not show any moderating roles on aforesaid relationship. Also, the present study provide partial support of Contingency Theory and RBV. Theoretical contributions and managerial implications of the study as well as suggestion for future research were discussed.