Study of managers in Vietnam shows HPWS practices impact both employer outcomes and firm performance

2020 ◽  
Vol 28 (2) ◽  
pp. 24-26
Keyword(s):  
Firm Performance ◽  
High Performance ◽  
Firm Growth ◽  
Longitudinal Design ◽  
Service Firms ◽  
Firm Innovation ◽  
Environmental Pressures ◽  
Content Type ◽  
General Managers ◽  
Hr Managers

Purpose The purpose of this paper was to explore the effects of high-performance work systems (HPWS) on the performance of Vietnamese firms. Design/methodology/approach The authors adopt a longitudinal design to provide insights into why and how HPWS are shaped in Taiwan. They interviewed 17 leaders, including CEOs, HR managers and general managers in 17 Vietnamese service firms. They were interviewed twice, in 2013 then in 2017. Findings Analysis of the data showed that HPWS can impact both employee outcomes, such as attitudes, behaviours and productivity, and firm performance, such as firm innovation, firm growth and profit growth. Originality/value This was one of very few studies to try and understand how and why HPWS are shaped and executed to respond to environmental pressures.

scholarly journals High-performance work system practices in Vietnam: a study of managers’ perceptions

2019 ◽  
Vol 6 (3) ◽  
pp. 145-160 ◽  
Author(s):  
Hoa Do ◽  
Pawan Budhwar ◽  
Charmi Patel
Keyword(s):  
Organizational Change ◽  
High Performance ◽  
Firm Growth ◽  
Longitudinal Design ◽  
Employee Attitudes ◽  
Service Firms ◽  
Firm Innovation ◽  
Environmental Pressures ◽  
Content Type ◽  
External Pressures

Purpose The purpose of this paper is to explore the effects of high-performance work systems (HPWS) on the performance of Vietnamese firms. It teases out the antecedents and effects of managers’ beliefs about why HPWS exist and are adopted within their firms, and also what effects HPWS practices have on their firm’s performance. Design/methodology/approach The authors adopt a longitudinal design to provide insights into why and how HPWS are shaped and diffused, and also how they convert the inputs into outputs such as HR outcomes, firm innovation and performance, based on a sample of 17 in-depth interviewees who were CEOs, HR managers, general managers in 17 Vietnamese service firms. Findings Results demonstrate that HPWS can impact both employee outcomes (e.g. employee attitudes, behaviours and productivity), and firm performance (e.g. firm innovation, firm growth and profit growth). Practical implications The study underscores the importance of HPWS as a response to organizational change that can help deal with external pressures and provides evidence about how the HPWS-innovation relationship is established in the research context. Originality/value This is among the first study to extend some aspects of institutional theory to understand the context of how and why HPWS are shaped and executed to respond to environmental pressures. It underscores the importance of HPWS as a response to organizational change that can help deal with external pressures, thereby serving as a leading step to yield meaningful outcomes with respect to the advancement of this research stream.

scholarly journals How do high performance work systems influence organizational innovation in professional service firms?

2015 ◽  
Vol 37 (2) ◽  
pp. 209-231 ◽  
Author(s):  
Na Fu ◽  
Patrick C. Flood ◽  
Janine Bosak ◽  
Tim Morris ◽  
Philip O'Regan
Keyword(s):  
High Performance ◽  
Organizational Innovation ◽  
Professional Service ◽  
Service Firms ◽  
Professional Service Firms ◽  
Firm Innovation ◽  
Work Systems ◽  
Content Type ◽  
High Performance Work Systems ◽  
Hrm Practices

Purpose – The purpose of this paper is to examine how a system of human resource management (HRM) practices, labelled high-performance work systems (HPWS), influences organizational innovation in professional service firms (PSFs). In this study, innovation in PSFs is seen as an indicator of firm performance and is calculated as the revenue per person generated from new clients and new services, respectively. Design/methodology/approach – Quantitative data were collected from 195 managing partners, HR managers or experienced Partners in 120 Irish accounting firms. Hierarchical regression analysis was used to test the hypotheses. Findings – The analysis results indicate strong support for the mediating role of employees’ innovative work behaviours in the relationship between HPWS and two types of PSFs’ innovation performance. Practical implications – Managers need to effectively adopt and implement innovation-based HRM practices to encourage and support employees’ creative thinking and innovation. Through the adoption and utilization of these practices managers can enhance the firm’s innovation and its performance. Originality/value – This study contributes to our understanding of the link between HRM and firm innovation by explicating a pathway between these variables. This study also generalizes consistent findings on the HRM-firm innovation relationship to a different context, i.e. PSFs.

How much and when to innovate

2017 ◽  
Vol 20 (4) ◽  
pp. 599-619 ◽  
Author(s):  
Thomas Anning-Dorson
Keyword(s):  
Firm Performance ◽  
Complexity Theory ◽  
Business Environment ◽  
Equation Modeling ◽  
Service Firms ◽  
Market Demand ◽  
Customer Demand ◽  
Environmental Pressures ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to examine the role of market innovation in driving service performance in the context of environmental pressures. This paper argues from the complexity theory that the development and the implementation of market innovation must critically examine the effect of customer demand and competitive intensity in the innovation efforts of service firms. Design/methodology/approach Data from different sub-sectors of the services industry of a growing emerging African economy are used. Structural equation modeling was used in analyzing the interconnection among environmental pressures, market innovation and firm performance. Findings The study found that both market demand and competition impact on innovation development positively. However, in terms of the moderation effects, competition negatively moderates the relationship between innovation and performance, while customer demand moderates the relationship positively. Practical implications The implications are that the implementation of market innovation must be reduced in low demand periods and high competitive periods in order to maximize financial and non-financial performance benefits for the service firm. Originality/value The current study complements the complexity theory by stating that the complex nature of business environment presents both opportunities and threats. However, for effective sense making out of the information provided by environment, service firms must evaluate environmental effect differently. While a factor may promote the development of strategy, same environmental factor may hinder the positive influence such strategy may have on overall firm performance.

High leverage and variance of SMEs performance

2019 ◽  
Vol 20 (2) ◽  
pp. 155-175 ◽  
Author(s):  
Mazen Gharsalli
Keyword(s):  
Firm Performance ◽  
Small Business ◽  
Firm Growth ◽  
Family Firms ◽  
Global Financial Crisis ◽  
Cash Flows ◽  
Data Set ◽  
Content Type ◽  
Good Investment ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between leverage and firm performance using small business data from France by estimating the effects of leverage on both average firm performance and the variance of firm performance. Design/methodology/approach Focusing on French small- and medium-sized enterprises (SMEs), which tend to be dependent on bank loans, the authors examine the relationship between leverage and firm performance. This study was based on a unique panel data set of more than 2,157 manufacturing SMEs covering the years 2007-2015. The authors estimate the effects of leverage on both average firm performance and the variance of firm performance. Findings Focusing on the average effects of leverage, the authors find that highly leveraged firms suffer from poor performance. In addition, the variance in firm performance is higher if firms are highly leveraged. Results also underline that leveraged firms are better performers when they have sufficient collateral assets. Research limitations/implications The study, however, has also some limitations. The first one is that the findings were obtained for only one industry sector, so attempts should be made to study the issue, as it applies to other sectors as well. Second is the context where the study was conducted. This study has been conducted based on data gathered from SMEs in France within a specific socioeconomic context (2007-2008 global financial crisis), which may also limit the generalizability of the results for different contexts with different socioeconomic situations. It would also be useful, to have a better explanation for the performance of SMEs, to add to the model more financial variables or other types of variables such as those related to managerial skills or to the macro-economic environment. Finally, further research could examine the joint impact of both leverage and ownership structure on firm’s performance as a large number of French firms are family firms. The limitations of this study, however, can in fact be an opportunity for future researchers to conduct studies addressing those limitations. Practical implications This research has some implications for small business lending. SME owners and managers may, on the one hand, be encouraged by the fact that collateral assets can reduce agency costs, thereby positively affecting firm performance. On the other hand, high leverage can facilitate firm growth if firms have collateral assets. This implies that policymakers interested in stimulating SMEs should develop more suitable collaterals for high-risk SMEs with low asset tangibility. Social implications The results also have implications for financial institutions. To prevent unexpected and extensive bankruptcies, banks might classify firms with negative cash flows as borrower in danger of bankruptcy. However, the results show that highly leveraged firms with good investment opportunities and high collateral assets reduce the probability of bankruptcy. This implies that banks need to evaluate the credit risk of very highly leveraged small businesses more carefully. Originality/value It should be noted that the case of France remains marginal in terms of the conducted studies.

Going the extra mile

2019 ◽  
Vol 28 (2) ◽  
pp. 18-20
Keyword(s):  
Organizational Citizenship ◽  
High Performance ◽  
Organizational Outcomes ◽  
Role Expectations ◽  
Psychological Climate ◽  
Citizenship Behaviors ◽  
Content Type ◽  
Pertinent Information ◽  
Hr Managers ◽  
Practical Implications

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 Employees are increasingly demanded to perform beyond their daily role expectations, in order to create effective organizational outcomes and gain competitive advantage. Performing organizational citizenship behaviors (OCBs) can lead to positive outcomes. To increase such behaviors, HR managers can use high-performance human resource practices (HPHRPs) which demonstrate investment in employees. Employees then perceive a more positive psychological climate (PC) in the workplace and are likely to reciprocate by investing more of themselves and increasing work engagement (WE) and motivation. 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.

High-performance human resource management and firm performance

2015 ◽  
Vol 115 (2) ◽  
pp. 353-382 ◽  
Author(s):  
Kangyin Lu ◽  
Jinxia Zhu ◽  
Haijun Bao
Keyword(s):  
Firm Performance ◽  
Human Resources ◽  
High Performance ◽  
Human Resources Management ◽  
Chinese Enterprises ◽  
Content Type ◽  
Resources Management ◽  
Mediating Role ◽  
The Relationship

Purpose – Human resources have become a key issue in relation to the strong competition between service firms. Therefore, the purpose of this paper is to explore the relationship between high-performance human resource management (HRM) within this field to firm performance, making a useful attempt to explore the “black box” of enterprise human resources management effect on firm performance. Design/methodology/approach – In order to validate the relationship between high-performance HRM and firm performance, Chinese service industry samples were collected. Structural equation modeling and regression are adopted to estimate the direct effect of high-performance HRM on firm performance and the mediating role of innovation. Findings – The results show that the impacts of high-performance HRM on firm performance are significant. Moreover, innovation plays a partial mediating role between them. Training, work analysis and employee participation has a significantly positive impact on firm performance, while effects of profit sharing, employee development and performance evaluation on enterprise performance is not significant. The results strongly support the hypothesis that innovation holds intermediary variables between high-performance HRM and firm performance. Practical implications – Studying the relationship between high-performance HRM and firm performance can help Chinese enterprises more reasonable and effective learning foreign advanced management ideas and methods. And then can help Chinese enterprises to establish a high-performance HRM system that is suitable for Chinese enterprises; the research can help enterprises to identify meaningful practice of human resources management, outstanding keys, and perfect the HRM system of enterprises; research on innovation and innovative thinking is conducive to develop employees’ innovation motive, promote employee’ innovative behavior, and improve firm performance. Originality/value – This paper takes innovation as a mediating variable into the model and studies the intermediary role of innovation.

Industry innovation spending and openness to collaboration as levers for firm performance

2019 ◽  
Vol 22 (4) ◽  
pp. 617-638 ◽  
Author(s):  
Luiz Fernando de Paris Caldas ◽  
Fabio de Oliveira Paula ◽  
T. Diana L. van Aduard de Macedo-Soares
Keyword(s):  
Firm Performance ◽  
Knowledge Spillovers ◽  
Moderating Effect ◽  
Firm Innovation ◽  
Content Type ◽  
Innovation Activities ◽  
Industry Collaboration ◽  
And Performance ◽  
Italian Manufacturing Firms ◽  
The Relationship

Purpose The purpose of this paper is to analyze to what extent spending on innovation activities and collaboration at the industry level affects the relationship between firm innovation and performance. Design/methodology/approach A conceptual model was proposed and empirically tested using multiple linear regression. The data were obtained from the Community Innovation Survey 2012, composing a sample of 890 Italian manufacturing firms. Findings The results provided full support for the positive moderating effect of intra-industry innovation spending and partial support for the positive moderating effect of intra-industry collaboration, both regarding the relationship between firm innovation spending and performance. Knowledge spillovers derived from intra-industry innovation spending and intra-industry collaboration affect firm performance. While this finding corroborates other studies that have found that the intra-industry R&D spending influences firms’ innovation and performance, it also contributes to improve the understanding about the complementarity of internal innovation activities and knowledge spillovers. Originality/value This study contributes to theory by filling a gap concerning the complementarity of internal innovation activities and the effect of knowledge spillovers to improve firm performance. Our findings suggested that intra-industry openness to collaboration and innovation spending, as proxies of knowledge spillovers, plays an important role in complementing firm level innovative efforts, even in the case of firms that spend less on innovation and have a lower degree of collaboration. This is especially relevant for small and medium enterprises, which can take advantage of access to the necessary information to overcome their internal resource constraints for R&D and innovation. The originality of these findings adds value in terms of furthering the understanding of this phenomenon.

Service creativity reinforcement and firm performance

2019 ◽  
Vol 31 (1) ◽  
pp. 1-23
Author(s):  
Kuen-Hung Tsai ◽  
Stephen Chi-Tsun Huang
Keyword(s):  
Firm Performance ◽  
Regression Method ◽  
Innovation Performance ◽  
Outcome Variable ◽  
Team Approach ◽  
Service Firms ◽  
Content Type ◽  
Two Samples ◽  
Performance Effects ◽  
Innovation Intensity

Purpose Many service firms have adopted creativity reinforcement mechanisms to manage employee-based service creativity so as to pursue their performance growth. However, its impact on firm performance has rarely been investigated in the extant research. The purpose of this paper is to satisfy this knowledge gap through an examination of how service creativity reinforcement (SCR) affects a firm’s performance. Design/methodology/approach Two samples were used to test the hypotheses. The first sample included a total of 4,381 service firms and was analyzed by using a traditional moderated regression method in relation to sales growth as the outcome variable. Due to a number of missing values, the second sample was reduced to 1,481 service firms. This sample was analyzed by using a moderated fractional regression method and the outcome variable was innovation performance. Furthermore, a multi-valued treatment approach with the augmented inverse-propensity weighted estimator was adopted to assess the performance effect that was associated with each of the SCR mechanisms. Findings Statistical analyses suggested that SCR positively affected both the firm’s performance and its innovation performance. Specifically, the stronger performance effects of SCR were associated with firms that had high innovation intensity, were small service firms and were part of the knowledge-intensive business service (KIBS) sector. The results also found that brainstorming sessions, a multi-disciplinary team approach, task rotation and non-financial incentives had greater performance effects than other mechanisms, especially for firms in the KIBS sector that had high innovation intensity. In addition, the results indicated that team-level mechanisms were more effective in developing highly innovative services than were individual-level mechanisms. Originality/value This study has contributed to the service literature by developing a contingency framework for SCR. This study has also advanced service research through the presentation of contextual effects associated with each mechanism of SCR.

Does organizational learning lead to higher firm performance?

2015 ◽  
Vol 22 (5) ◽  
pp. 271-288 ◽  
Author(s):  
Wencang Zhou ◽  
Huajing Hu ◽  
Xuli Shi
Keyword(s):  
Organizational Learning ◽  
Firm Performance ◽  
Financial Performance ◽  
Secondary Data ◽  
Positive Association ◽  
Firm Innovation ◽  
Content Type ◽  
Firm Financial Performance ◽  
Positive Correlations ◽  
And Performance

Purpose – The purpose of this paper is to develop a framework for studying organizational learning, firm innovation and firm financial performance. Design/methodology/approach – This paper examines the effects of organizational learning on innovation and performance among 287 listed Chinese companies. Findings – The results indicate a positive association between organizational learning dimensions and firm performance (both objective financial performance and perceptual innovation measure). Research limitations/implications – The sample includes only firms for which secondary data are available. Different results might have been obtained if we include smaller, private firms into the sample. This paper only includes a limited number of measures of financial performance to assess the relationship between organization learning dimensions and firm performance. Therefore, researchers are encouraged to test the proposed propositions further with different performance measures. Practical implications – The results showed that it is the combination of several learning characteristics and not a single dimension that influenced the variance of firm performance. The findings reinforce the notion that systemic interventions that address a variety and different combinations of learning organization characteristics will be more likely to be successful than interventions that solely focus on singular or a limited number of dimensions. Originality/value – The integration of objective measures of firms’ financial performance with perceptual survey data represents a unique methodology that has not been widely used in the organizational learning literature. The positive correlations between the eight learning dimensions and the measures of firms’ performance lend credence to the efficacy of the organizational learning concepts.

scholarly journals Intellectual capital and organizational ambidexterity in Chinese and Irish professional service firms

2016 ◽  
Vol 3 (2) ◽  
pp. 94-114 ◽  
Author(s):  
Na Fu ◽  
Qinhai Ma ◽  
Janine Bosak ◽  
Patrick Flood
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
Intellectual Capital ◽  
Professional Service ◽  
Service Firms ◽  
Organizational Ambidexterity ◽  
Professional Service Firms ◽  
Content Type ◽  
Internal Management ◽  
The Impact

Purpose – Organizational ambidexterity enables firm to simultaneously exploit existing resources and explore new resources. It is associated with high levels of organizational performance. The purpose of this paper is to identify key internal management resources which contribute to building organizational ambidexterity. In particular, this study examines the impact of intellectual capital, i.e. human, social, and organizational capital, on organizational ambidexterity which in turn influences firm performance. Design/methodology/approach – The research was conducted within the context of professional service firms due to the importance of intellectual capital and organizational ambidexterity. Data were collected from 112 Chinese (cross-sectional design) and 93 Irish accounting firms (time-lagged design). Findings – Results provide support for the linkage of intellectual capital to organizational ambidexterity and firm performance. Interestingly, findings are mixed regarding the impact of the three types of capital resources on organizational ambidexterity across both countries. Practical implications – This study finds that various components of intellectual capital facilitate organizational ambidexterity which in turn improves firm performance. Therefore the authors provide managers with evidential support for the salience of intellectual capital in enabling organizations to simultaneously engage in exploiting existing resources while also exploring new ideas and opportunities. Originality/value – This study is unique in that it highlights the importance of internal management resources in building up organization’s ambidexterity capability. The link between intellectual capital and organizational ambidexterity was established using a rigorous research design which has not been done before. It also emphasizes the role of people in leading to organizational effectiveness via developing organizational ambidexterity. Furthermore the evidence is gathered in two countries.

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