Do high-performance work systems mediate the relationship between HR practices and employee performance in multinational corporations (MNCs) in developing economies?

2020 ◽  
Vol 11 (4) ◽  
pp. 541-557
Author(s):  
James Baba Abugre ◽  
David Nasere
Keyword(s):  
Multinational Corporations ◽  
High Performance ◽  
Developing Economies ◽  
Employee Performance ◽  
Job Involvement ◽  
Training And Development ◽  
Equation Modeling ◽  
Content Type ◽  
Hr Practices ◽  
The Relationship

PurposeThe purpose of this paper is to examine the mediating role of job involvement as high-performance work system (HPWS) on the relationship between human resource (HR) practices and employee performance in multinational corporations (MNCs) in developing economies using Ghana as a case study.Design/methodology/approachUsing questionnaires to collect data from 317 employees and ten MNCs in Ghana, structural equation modeling (SEM), multiple regression and bootstrapping analysis were used to analyze the data.FindingsThe results showed that an HPWS proxy as job involvement fully mediates the relationship between HR practices and employee performance. The findings also showed that training and development and compensation and reward have a significant and direct positive effect on employee performance.Practical implicationsThis paper provides a practical guide to management and corporations on the significance of training and compensation on employee performance in MNCs. The study, therefore, recommends managers of firms and corporations to take a serious look at their HR practices and institute an HPWS, which can positively improve both corporate and employee performance.Originality/valueThis paper enhances our understanding of micro-level HPWS in the form of job involvement as a positive mediator between training and development and employee performance on the one hand, and between compensation and reward and employee performance on the other hand in work organizations in a less-studied context.

The effect of foreign market knowledge on SME export performance: a study ofnon-traditional SMEs in Ghana

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aidatu Abubakari ◽  
Kwame Simpe Ofori ◽  
Henry Boateng ◽  
Koffi N’Da ◽  
Robert Ebo Hinson
Keyword(s):  
Multinational Corporations ◽  
Absorptive Capacity ◽  
Developing Economies ◽  
Export Performance ◽  
Foreign Market ◽  
Moderating Effect ◽  
Equation Modeling ◽  
Market Knowledge ◽  
Content Type ◽  
The Relationship

Purpose It is well documented in the extant literature that knowledge plays a crucial role in small and medium enterprise (SME) internationalization. Exporting SMEs from developing economies faces many challenges, including lack of knowledge about institutions in foreign markets, inadequate knowledge about foreign institutions and limited internationalization knowledge (IK). However, research on the export performance of SMEs has thus far focused on the internationalization strategies of multinational corporations. This study aims to explore the effect of foreign market knowledge on SME export performance. The authors also assessed the moderating effect of employee absorptive capacity in the knowledge-performance nexus. Design/methodology/approach The authors adopted a survey design to collect data from owners/managers of SMEs exporters in the Greater Accra region of Ghana. A total of 350 questionnaires were distributed based on convenience. Of this number, 257 usable responses were used in the final analysis. The authors tested the proposed model using partial least squares-structural equation modeling. Findings The findings show that the three types of foreign market knowledge tested in this study, namely, foreign institutional knowledge (FIK), foreign business knowledge and IK have positive and significant effects on SME exporters’ performance. It also shows that employees’ absorptive capacity affects the relationship between FIK and SME exporters’ performance. Originality/value The study demonstrates the types of knowledge relevant to SME export performance. The study further demonstrates the moderating effect of employee absorptive capacity on the relationship between knowledge and export performance. The study advances existing knowledge on SME performance, especially from an emerging economy context.

scholarly journals High-performance HR practices, positive affect and employee outcomes

2017 ◽  
Vol 32 (2) ◽  
pp. 163-176 ◽  
Author(s):  
Ahmed Mohammed Sayed Mostafa
Keyword(s):  
Job Satisfaction ◽  
Positive Affect ◽  
Structural Equation ◽  
High Performance ◽  
Employee Attitudes ◽  
Equation Modeling ◽  
Content Type ◽  
Hr Practices ◽  
Study Results ◽  
The Relationship

Purpose The purpose of this paper is to provide insight into the affective or emotional mechanisms that underlie the relationship between high-performance HR practices (HPHRP) and employee attitudes and behaviours. Drawing on affective events theory, this paper examines a mediation model in which HPHRP influence positive affect which in turn affects job satisfaction and organizational citizenship behaviours (OCBs). Design/methodology/approach Two-wave data were collected from a sample of local government workers in Wales (n=362). HPHRP were measured together with job satisfaction and OCBs at Time 1 and six months later, job satisfaction and OCBs were measured again together with positive affect. Structural equation modeling was used to test the study hypotheses. Findings The results revealed that HPHRP induced positive affect which, in turn, led to increased job satisfaction and OCBs. Furthermore, positive affect fully mediated the relationships between HPHRP and both job satisfaction and OCBs. Research limitations/implications All data were collected from public sector employees in the Government of Wales, which makes the generalizability of the findings unknown. More work is needed using different samples to determine whether the study results are replicable. Practical implications Managers should endeavour to ensure that enough resources are assigned to the implementation of HPHRP and other work features that help evoke affective reactions, as these reactions are an important determinant of employees’ attitudes and behaviours. Originality/value This is one of the first studies to empirically examine the mediating role of positive affect on the relationship between HPHRP and employee attitudes and behaviours.

Mediation effect of quality of worklife, job involvement, and organizational citizenship behavior in relationship between transglobal leadership to employee performance

2017 ◽  
Vol 59 (6) ◽  
pp. 1143-1158 ◽  
Author(s):  
Adya Hermawati ◽  
Nasharuddin Mas
Keyword(s):  
Organizational Citizenship ◽  
Organizational Citizenship Behavior ◽  
Employee Performance ◽  
Job Involvement ◽  
Quality Of Work Life ◽  
Citizenship Behavior ◽  
Content Type ◽  
Quality Of Work ◽  
The Relationship

Purpose The purpose of this paper is to obtain empirical evidence, analyze and explain the mediating effect of the quality of work life (QWL), job-retention engagement and organizational citizenship behavior (OCB) on the relationship between transglobal leadership and employee performance. Design/methodology/approach The population in this research is all employees of the most outstanding cooperatives in East Java Province. The method used to analyze the data in this study is generalized structural component analysis. Findings The main findings of this research show that the effects of mediation variables of QWL, job involvement and OCB in transglobal leadership influence employee performance in cooperatives in East Java. These findings are not in line with the Theory of Leadership by Sharkey et al. (2012), and explains the link between behaviors of transglobal leadership and employee performance. The study finds a need for attention in intervening/mediating variables such as QWL, job involvement and OCB as regard the relationship between transglobal leadership and employee performance. Research limitations/implications Transglobal leadership directly affects the QWL, job involvement and OCB: the higher the transglobal leadership, the higher the effect on QWL, job involvement and OCB. However, transglobal leadership has no direct effect on employee performance. Then, QWL, job involvement and OCB are mediating variables between the effects of transglobal leadership on full-mediation employee performance. Social implications To improve the performance of employees of cooperatives, some improvements are needed such as an increase in the quality of a leader’s cooperative approach, especially with transglobal leadership style. However, particularly in the approach, factor of quality of work life, job involvement and OCB cannot be ignored or overriden. Improved leadership capacity, priority for improved business intelligence main factor, while the quality of work-life priorities take precedence in the growth and development factors. Job involvement of preferred priority on self-esteem factor performances, while the main priority organizational citizenship behavior on altruism factor. Employee performance will be improved with the aforementioned ideal conditions, especially on the work factor result. Originality/value Mediation effect of job involvement and OCB, using Sobel test, for assessing the relationship between translgobal leadership and employee performance has not been studied before.

Understanding the currency of reciprocity in high performing employees

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
High Performance ◽  
Leadership Behavior ◽  
Employee Performance ◽  
Content Type ◽  
Team Members ◽  
High Performing ◽  
Member Exchange ◽  
Taking Charge ◽  
Task Oriented ◽  
The Relationship

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concerns itself with the relationship between taking-charge behavior, task-oriented leadership behavior, leader-member exchange (LMX) relationships, and employee performance. The results gleaned from the sales team members at pharmaceutical companies revealed that these employees positively take more charge of their performance when they experience higher LMX, which comes from them outperforming their baseline role expectations in the first place. High performance breeds more high performance through the relationship these employees develop with leaders, and through the reciprocity principle. Task-oriented leaders successfully developed LMX-fueled relationships with high performing employees across three identified stages. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Does the perceived efficiency of the HR department matter in influencing satisfaction and employee performance?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Swati Dhir ◽  
Tanusree Chakraborty
Keyword(s):  
Service Quality ◽  
Employee Performance ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Content Type ◽  
Hr Practices ◽  
Structured Equation Modeling ◽  
Link Service

PurposeThis paper aims to understand the role of perception of HR capability, HR service quality, along with HR inducements, which, in turn, provides satisfaction with HR practices and affects employee performance.Design/methodology/approachThe data of 155 managers have been collected through a questionnaire to understand the relationship among the studied constructs using partial least square structured equation modeling (PLS-SEM).FindingsThe results suggest that employers should attempt to create a positive perception by providing quality services in the HR domain, and quality services will certainly enhance employee performance.Originality/valueThis study is unique in terms of its contribution. This study has tried to link service quality and satisfaction to HR practices with employee performance. Further, it also shows that HR should be capable and have high HR inducements to provide the necessary and expected HR services, which leads to employee satisfaction with HR practices and employee performance.

A mediating and moderating role on employee performance appraisal

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Adie Irwan Kusumah ◽  
Haryadi ◽  
Adi Indrayanto ◽  
Iwan Setiawan
Keyword(s):  
Transformational Leadership ◽  
Intrinsic Motivation ◽  
Self Efficacy ◽  
Structural Equation ◽  
Employee Performance ◽  
Equation Modeling ◽  
Future Research ◽  
Content Type ◽  
The Relationship ◽  
Moderating Role

Purpose This study aims to determine the relationship between transformational leadership, self-efficacy, gender, intrinsic motivation and employee performance in mediating and moderating roles. Design/methodology/approach Respondents in this study were 531 hotel employees (human resources development staff, financial, relationship) in Yogyakarta who were led by women. Structural equation modeling was used to test the hypotheses using AMOS 22.0. Findings The results show that transformational leadership has a positive and significant effect on employee performance, self-efficacy acts as a mediating variable on the relationship between transformational leadership and employee performance. The results also indicate that gender acts as a moderating variable by strengthening the relationship between transformational leadership and employee performance and intrinsic motivation acts as a moderating variable by strengthening the relationship between self-efficacy and employee performance. Research limitations/implications This study has two limitations. First, the research results cannot conclude the company in general because the sampling of this study is limited to the hotel business which is led by women only. Future research is needed to explore more deeply to compare the performance of employees in companies led by women and those led by men. Second, this study uses only one independent variable. Future research needs to be done to explore the effect of other variables on company performance, such as work culture, work environment and job satisfaction. Practical implications The main managerial contribution of this study is directed to companies that are interested in developing employee performance. First, self-efficacy is able to mediate transformational leadership in achieving employee performance. Besides this research offers a clear strategy for companies to stimulate their employees to strengthen leadership individually so as to improve the quality of their work. Thus, companies can carry out leadership training that is focused on being able to recognize employees who have low self-efficacy. If this is done, the company can reduce expenses that are not small but can make a significant contribution. Originality/value To the best of the authors’ knowledge, this study is the first to examine the mediating and moderating role of transformational leadership, employee performance, self-efficacy, gender and intrinsic motivation, especially in a hotel business led by women in Yogyakarta, Indonesia.

Entrepreneurial knowledge and start-up behavior in a turbulent environment

2017 ◽  
Vol 36 (9) ◽  
pp. 1149-1159 ◽  
Author(s):  
Muhammad Yasir ◽  
Abdul Majid ◽  
Muhammad Yasir
Keyword(s):  
Developing Economies ◽  
Positive Impact ◽  
New Ventures ◽  
Environmental Turbulence ◽  
Equation Modeling ◽  
Content Type ◽  
Entrepreneurial Opportunities ◽  
Start Up ◽  
Entrepreneurial Knowledge ◽  
The Relationship

Purpose The purpose of this paper is to refine the relationship between environmental turbulence and start-up behavior by considering entrepreneurial-related antecedents (alertness to business ideas, entrepreneurial opportunities, and intention toward entrepreneurship) and moderating roles of entrepreneurial knowledge. Design/methodology/approach The study was conducted through a self-administered survey of owner/managers of SMEs in Pakistan. Correlation, moderated hierarchical regression, and structural equation modeling approach were used for the analysis. Findings The results revealed that environmental turbulence positively affects the alertness to business ideas and entrepreneurial opportunities which, in turn, affect intention toward entrepreneurship. The results also suggested that entrepreneurial knowledge significantly moderates the relationship between intention toward entrepreneurship and start-up behavior. Research limitations/implications The changes in the market and technologies which shape the entrepreneurial behavior toward start-up activities should be longitudinally observed. The research data came from the owner/managers of SMEs industries; therefore, the findings may not be generalized to other sectors due to industry-specific difference. Practical implications The positive impact of environmental turbulence suggests that turbulence is a presentiment signal, calling upon the entrepreneurs to collect meaningful information as well as identify new opportunities and adjust their capabilities for any challenges and changes ahead. Originality/value The study confirmed the positive impact of environmental turbulence toward the creation of new ventures in the context of developing economies as well as the moderating role of entrepreneurial knowledge on the relationship between intention toward entrepreneurship and start-up behavior in small and medium enterprises.

HR practices and employee performance: the mediating role of well-being

2018 ◽  
Vol 40 (2) ◽  
pp. 227-243 ◽  
Author(s):  
Violetta Khoreva ◽  
Heidi Wechtler
Keyword(s):  
Job Performance ◽  
Employee Performance ◽  
Well Being ◽  
Unintended Consequences ◽  
Professional Service ◽  
Equation Modeling ◽  
Content Type ◽  
Hr Practices ◽  
Study Results ◽  
Different Dimensions

Purpose The purpose of this paper is to examine the associations between the skill-, motivation- and opportunity-enhancing dimensions of human resource (HR) practices and in-role and innovative job performance. Furthermore, it considers the mediating effects of psychological, physical and social employee well-being on these associations. Design/methodology/approach Structural equation modeling was utilized to analyze multi-source survey data from a sample of 300 employees and 34 immediate supervisors in a professional service company in Finland. Findings The results indicate that whereas physical and social employee well-being partially mediate the association between skill- and opportunity-enhancing HR practices and in-role job performance, psychological employee well-being partially mediates the association between motivation-enhancing HR practices and innovative job performance. Research limitations/implications Given its cross-sectional nature, the authors cannot completely exclude the possibility of common method bias influencing the study results. The authors thus call for longitudinal research to examine the nature of causality within the associations analyzed in the study. Originality/value This study does not support the notion of trade-offs between HR practices, employee well-being and employee performance. Instead, it illustrates that even though different dimensions of HR practices enhance different dimensions of employee well-being, which, in turn, increase different types of employee performance, the different dimensions of HR practices work in the same direction and do not generate any unintended consequences in terms of reduced employee physical well-being.

High-performance work systems and job satisfaction: a multilevel model

2016 ◽  
Vol 31 (2) ◽  
pp. 451-466 ◽  
Author(s):  
Romina García-Chas ◽  
Edelmira Neira-Fontela ◽  
Concepción Varela-Neira
Keyword(s):  
Job Satisfaction ◽  
Intrinsic Motivation ◽  
High Performance ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Work Systems ◽  
Content Type ◽  
High Performance Work Systems ◽  
The Relationship

Purpose – The purpose of this investigation is to analyze the role of perceived organizational support (POS) and intrinsic motivation in the relationship between high-performance work systems (HPWS) and job satisfaction. Design/methodology/approach – The sample used in this study consists of 180 engineers from 25 companies. The model entails a cross-level moderated mediation process that was tested using multilevel structural equation modeling. Findings – This research shows that the effect of HPWS via POS on job satisfaction is stronger among engineers with low intrinsic motivation than engineers with high intrinsic motivation. Practical implications – Given the findings of this paper, organizations are advised to consider the importance of HPWS perceptions and intrinsic motivation to help strengthen engineer satisfaction. Originality/value – This is the first study to provide evidence for the mediating effect of POS in the relationship between employees’ shared perceptions of the HPWS implemented at their companies and their job satisfaction, and the moderating role of employee intrinsic motivation in the relationship between POS resulting from HPWS and job satisfaction.

The link between perceived high-performance work practices, employee attitudes and service quality

2018 ◽  
Vol 40 (5) ◽  
pp. 801-821 ◽  
Author(s):  
Panagiotis V. Kloutsiniotis ◽  
Dimitrios M. Mihail
Keyword(s):  
Service Quality ◽  
High Performance ◽  
Banking Sector ◽  
Employee Attitudes ◽  
Equation Modeling ◽  
Employee Outcomes ◽  
Content Type ◽  
The Relationship ◽  
Moderating Role

PurposeThe purpose of this paper is to focus on the Greek banking sector and examine the indirect effects of high-performance work systems (HPWS) on service quality. Specifically, this study examines the effects of employees’ perceptions of HPWS on their trust toward their managers, as well as on service quality, through the mediating role of employee outcomes (measured by job satisfaction and affective commitment). In addition, trust is also tested for its role as a potential mediator and moderator in the relationship between HPWS and employee outcomes.Design/methodology/approachPartial least squares structural equation modeling was used on a sample of 350 front-line employees working in the Greek banking sector.FindingsThe findings showed that employee outcomes mediated the relationship between HPWS and service quality. On the other hand, although trust mediated the relationship between HPWS and employee outcomes, no support was found for its moderating effect. Finally, although not included in the initial analysis, trust was found to play a mediating and moderating role in the relationship between HPWS and service quality.Practical implicationsThis study highlights the vital role that a “trusting” work environment has to play on employee attitudes and outcomes. As this study shows, the positive employee behaviors along with their willingness to accept and support organizational goals influence their level of productivity.Originality/valueThis study sheds lights on the mediating and moderating role of trust in the relationship between HPWS, employee outcomes, and service quality. Finally, implications are drawn for organizations, managers, and practitioners.

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