The main objective of the present research is to briefly review the strategic human resource management (HRM) literature from multilevel theoretical perspectives to review what we know about mediating mechanisms in the HR‐performance relationship. By doing so, we highlight future research needs to advance theoretical understanding of the “black box” in strategic HRM research. Furthermore, by offering additional theoretical perspectives that can be used to understand the mediating mechanisms at different levels, we suggest future research directions that capture the complexities associated with strategic HRM through a multilevel theoretical lens. Implications of the model are discussed.