Indian study shows high-performance work systems (HPWS) mediate the relationship between business strategy and employees’ intention to leave

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  

Purpose This paper examines the relationship between business strategies and employees’ intention to leave (ITL), through the mediating role of high-performance work system (HPWS). Design/methodology/approach To test their hypotheses, the authors used self-administered questionnaires. They drew up a list of 600 organizations of different nature and structure operating in India that were listed by the Federation of Indian Chambers and Industry. They approved 192 organizations and sent the surveys to 960 executives. They aimed to receive a minimum of one response from an HR executive and two from non-HR executives from each one. In the end, they received 572 useable responses. Findings The study found that high-performance work systems (HPWS) mediate the relationship between business strategy and employees’ intention to leave (ITL). The two effective approaches were “quality management” and “innovation strategy”, both of which reinforced the adoption of HPWS. But a third approach, a “cost-reduction strategy”, was not shown to be positively correlated with HPWS. Another important finding was that the influence on ITL did not vary across the types, or ownership structures, of the firms. Originality/value The data has lessons for HR departments. First, it shows it is advantageous for firms hoping to retain more employees to invest in HPWS that are consistent with the values of their organizations. A second practical finding is that firms need to take into account the Indian context. A third lesson is HR practitioners should make strong efforts to communicate the goals of the HPWS to employees The study also shows firms adopting cost-reduction strategies should focus more on treating employees as resources.

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zhining Wang ◽  
Chuanwei Sun ◽  
Shaohan Cai

PurposeThe purpose of this research is to examine the relationship between exploitative leadership and employee innovative behavior and explore the mediating role of relational attachment and the moderating role of high-performance work systems (HPWSs).Design/methodology/approachThis research collected data from 374 employees and their direct supervisors in 75 teams and tested a cross-level moderated mediation model using multilevel path analysis.FindingsThe results suggest that (1) exploitative leadership has a negative impact on employee innovative behavior; (2) relational attachment mediates the relationship between exploitative leadership and employee innovative behavior; (3) HPWS positively moderates the relationship between exploitative leadership and relational attachment and (4) HPWS moderates the mediating mechanism from exploitative leadership to employee innovative behavior.Practical implicationsThe empirical findings suggest that organizations should make efforts to prevent exploitative leadership. Moreover, managers should pay attention to the important role of relational attachment in promoting employee innovative behavior and realize the role of HPWSs in facilitating the negative effects of exploitative leadership.Originality/valueThis research identifies relational attachment as a key mediator that links exploitative leadership to innovative behavior and reveals the role of HPWSs in strengthening the negative effects of exploitative leadership on employee innovative behavior.


2016 ◽  
Vol 39 (12) ◽  
pp. 1587-1615 ◽  
Author(s):  
Subhash C. Kundu ◽  
Neha Gahlawat

Purpose This paper aims to advance the research on relationship between high performance work systems (HPWS) and employees’ intention to leave by examining the mediating role of trust, motivation and organizational citizenship behaviour. Design/methodology/approach Primary data based on 563 respondents were analysed to investigate the relationship between HPWS, employee outcomes and employees’ intention to leave. Statistical techniques like confirmatory factor analysis, correlations, regression and bootstrapping were used to analyse the data. Findings The study has revealed that the application of HPWS in the form of rigorous staffing, extensive training, performance-based appraisal and compensation, employee relations, self-managed teams, flexible work arrangements and empowerment results in enhanced employee work-related outcomes and decreased intention to leave among employees. The results have indicated that the relationship between HPWS and employees’ intention to leave is serially mediated by employee outcomes. Practical implications The study gives strong indications that investments in creating bundles of high performance HR practices will enhance the value of the human capital by eliciting favourable employee attitudes and behaviours and therefore will prove beneficial for the organizations operating in India. Originality/value This study has attempted to provide new insights in the underlying mechanism existing in the relationship between HPWS and employees’ intention to leave by using multiple mediators in sequence.


2016 ◽  
Vol 45 (1) ◽  
pp. 121-141 ◽  
Author(s):  
Unai Elorza ◽  
Christopher Harris ◽  
Aitor Aritzeta ◽  
Nekane Balluerka

Purpose – The purpose of this paper is to understand how management and employee perspectives of high-performance work systems (HPWS) relate to employee discretionary behaviour. In addition, the paper examines to what extent the relationship between employees’ perception of the HPWS and discretionary behaviour varies among different organizations/groups. Design/methodology/approach – Two samples were used in the study. The first sample included data from 51 managers and 1,023 employees from 26 manufacturing companies. The second sample included 52 managers and 6,382 employees from 42 manufacturing companies. Findings – The study shows that employee rated HPWS mediates the relationship between management rated HPWS and individual-level discretionary behaviour. Moreover, results showed that the effect of employee rated HPWS on discretionary behaviour varies among different organizations/groups. Practical implications – Results show that employee perceptions of the HPWS more strongly predict employees’ discretionary behaviour than management rated HPWS. Moreover, it shows that employees’ perceptions of the same HPWS, but operating in different organizational contexts exhibit different levels of discretionary behaviour. Originality/value – The study differentiates between management and employee perspectives of the HPWS. It also examines the variability of the relationship between HPWS and discretionary behaviour. Multilevel structural equation modelling is used to test the hypotheses.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Subhash C. Kundu ◽  
Archana Mor ◽  
Neha Gahlawat

PurposeThe purpose of this study is to examine the relationship between business strategies (i.e. cost reduction, quality enhancement and innovation strategy) and employees' intention to leave (ITL), through the mediating role of high-performance work system (HPWS). It also attempts to study variability in the relationship between business strategies, HPWS and employees' ITL on the basis of nature and ownership forms of the firms.Design/methodology/approachPrimary data based on 573 respondents from 192 organizations operating in India were analysed using structural equation modelling and conditional process modelling.FindingsThis study has revealed that HPWS mediates the relationship between business strategy (specifically innovation and quality-enhancement strategy) and employees' ITL. Findings further indicate that the mediated relationships between quality enhancement and innovation strategy, HPWS and ITL do not vary across nature and ownership forms of the firms.Practical implicationsIn context of dynamic business environments in developing countries, the findings provide some important insights in exploring the relevance of strategic human resource management in improving employees' behavioural intentions.Originality/valueBy applying a three dimensional business strategy system (innovation, quality and cost) and by exploring the relevance of several contextual factors, this study attempts to expand the focus of turnover research.


2020 ◽  
Vol 120 (8) ◽  
pp. 1441-1457
Author(s):  
Jia Zheng ◽  
Hefu Liu ◽  
Jingmei Zhou

PurposeThis study aims to explore the impact of high-performance work systems (HPWS) on open innovation and the moderating role of information technology (IT) capability on the relationship between HPWS and open innovation.Design/methodology/approachThis study conducted a questionnaire survey in the industrial parks of the Yangzi River Delta in China and obtained 108 useful responses.FindingsHPWS positively impacts open innovation. IT exploration capability strengthens the relationship between HPWS and open innovation, whereas IT exploitation capability and ambidexterity do not strengthen such relationship.Research limitations/implicationsFirms should use HPWS to improve employees' motivation of external learning and searching for enhancing innovation openness. They should acknowledge the enabling role of IT exploration capability in facilitating employees' learning and searching toward open innovation and discreetly develop IT exploitation capability and ambidexterity during external knowledge searching, which may not achieve the desired facilitation purpose.Originality/valueThis study contributes to human resource management (HRM) by suggesting that a new antecedent, which is HPWS in our case, should be taken into account when considering the influence of HRM in the process of open innovation. This study has important implications for HPWS, IT capability and open innovation; open innovation can be improved by using HPWS and IT capability. This study also expands IT ambidexterity to HRM and innovation studies.


2019 ◽  
Vol 48 (4) ◽  
pp. 977-1000 ◽  
Author(s):  
Khuram Shahzad ◽  
Pia Arenius ◽  
Alan Muller ◽  
Muhammad Athar Rasheed ◽  
Sami Ullah Bajwa

Purpose The purpose of this paper is to explore the black box between high-performance work systems (HPWS) and innovation performance in small- and medium-sized enterprises (SMEs). Through application of the ability, motivation and opportunity (AMO) framework, the study examines the mediating roles of innovation-specific ability, motivation and voice behaviors between HPWS and SMEs’ innovation performance. Design/methodology/approach The hypotheses are tested on data collected through a self-administered questionnaire from 237 SMEs in Pakistan. Findings Findings indicate that human capital, motivation and employee voice fully mediate the relationship between HPWS and innovation performance in SMEs. Research limitations/implications The cross-sectional research design and self-reported measures warrant caution for the interpretation of findings. Future research may consider a longitudinal research design and objective measures. Practical implications SMEs need to invest in the adoption and implementation of HPWS that will develop innovation-specific abilities, motivation and voice behaviors simultaneously among employees that will lead to higher innovation performance. Originality/value This is the first study of its kind utilizing an AMO framework to investigate the underlying mechanism through which HPWS affect innovation performance in SMEs.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anastasia Katou

PurposeThis paper aims to theoretically propose and empirically test a research framework that investigates the relationship between high-performance work systems (HPWSs) and organizational performance through the serially mediating mechanisms of employee HPWS-experience attributions of well-being and exploitation, attitudes, and behaviors.Design/methodology/approachMultilevel structural equation modeling through Mplus was applied to a sample of 1,112 employees working at 158 Greek organizations.FindingsThe modeling's findings indicate that the serially mediating mechanism of employee HPWS-experience attributions of well-being, attitudes and behaviors improves organizational performance. Meanwhile, the serially mediating mechanism of employee HPWS-experience attributions of exploitation, attitudes and behaviors was found to weaken organizational performance.Practical implicationsThis study shows that, to improve employees' well-being and weaken employee exploitation through employees' HPWS-experience attributions, senior and line managers should gain competencies and communication skills through training and development programs, successfully communicating HPWS messages to employees.Originality/valueThis study may be the first study to elucidate the serially mediating mechanisms of employees' well-being and exploitation through employees' HPWS-experience attributions, attitudes and behaviors in the relationship between HPWSs and organizational performance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jola-Ade Ashiru ◽  
Galip Erzat Erdil ◽  
Dokun Oluwajana

PurposeThe purpose of this paper is to examine the influence of high performance work systems (HPWSs) on employee voice, employee innovation and organization performance in a service organization. The study examines the mediating roles of employee voice on HPWSs and organizational performance.Design/methodology/approachAn online survey was distributed to 600 professional staff and a total number of 360 respondents returned the survey. The hypotheses are tested through the use of the variance-based structural equation modeling (SEM) technique.FindingsThese findings indicate that the HPWS has a significant impact on employee innovation and organization performance. The empirical evidence does not support the relationship between HPWS and employee voice and also employee voice does not mediate the relationship between HPWS and organization performance in a human resource (HR) service organization.Research limitations/implicationsEmployee voice does not empirically mediate the relationship between HPWS and organization performance; other factors can be further explored. Future research should employ other theories of strategic human resource management (SHRM) to further explore more factors that influence the HPWS on employee innovation, employee voice and organization performance.Practical implicationsThe organization should respond to employee voice through aforementioned rather than the use of traditional, strategic and operational methods or tools believed to be the best approach to employee issues.Originality/valueThis study builds a solid empirical investigation that contributes to the HPWS existing body of knowledge. It is also significant as it is one of the few studies that examine the link between HPWS and job outcomes, like employee voice, employee innovation and organizational performance, in an HR service organization and also employee voice as a mediator on HPWS and organizational performance.


2014 ◽  
Vol 36 (6) ◽  
pp. 693-707 ◽  
Author(s):  
Shaun Pichler ◽  
Arup Varma ◽  
Andrew Yu ◽  
Gerard Beenen ◽  
Shahin Davoudpour

Purpose – The purpose of this paper is to develop and test hypotheses about the independent relationships between high-performance work systems (HPWS) and high-performance work cultures (HPWC) and employee turnover. Given the growth of women in the workforce, the authors also develop competing predictions about how organizational gender demography (i.e. a higher percentage of women) may either strengthen or weaken the relationship of HPWSs to turnover. Design/methodology/approach – A survey of 171 human resource (HR) executives across organizations of various sizes and industries in the Chicago metropolitan area in the USA was conducted. Findings – The authors found that HPWS and HPWC are associated with lower turnover, though the relationship between HPWC and turnover was stronger. Results also indicate that HPWS are more strongly related to lower turnover among organizations that employ relatively more women. Research limitations/implications – The results indicates that HPWS may not be universalistic in terms of their effectiveness specifically as related to turnover. This was a cross-sectional study; it would be useful for future research to use a longitudinal research design. Practical implications – The findings suggest that organizations should consider how their cultures, use of high-performance work practices, and gender demography are related to important HR metrics such as turnover. Social implications – This paper represents an important contribution to understanding the importance and implications of changes in the workforce demographic characteristics. Originality/value – This is the first study to integrate an organizational demography perspective with HPWS.


2016 ◽  
Vol 31 (2) ◽  
pp. 451-466 ◽  
Author(s):  
Romina García-Chas ◽  
Edelmira Neira-Fontela ◽  
Concepción Varela-Neira

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.


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