Critical Success Factors of High Performance Work System (HPWS) Practices: Findings from Malaysian SMEs

Author(s):  
Noor Hassanah Husin ◽  
Nur Naha Abu Mansur ◽  
Nur Naha Abu Mansur ◽  
Beni Widarman Yus Kelana

Innovation plays a major role and is a crucial component of the organization’s growth. Creativity and innovation have become increasingly popular as key contributors to firm success in the last few decades or so. The incoming technology of Industrial Revolution 4.0 forced many companies to be innovative to compete in technological era. However, many SMEs are not ready and less innovative. Furthermore, there is lack of research focus on HPWS implementation amongst SMEs indicates that further research must be conducted along these lines. Therefore, this study aim to investigate the effect of high performance work system (HPWS) towards innovative work behaviour of employees in small and medium enterprises. This study used quantitative approach to identify the critical success factor of high performance work systems (HPWS) in Malaysian small and medium enterprises (SME) manufacturing industry. This study used descriptive analysis to analyze the data. Five-point Likert scales items ranging from (1-strongly disagree, 5 – strongly agree) employed for measuring the HPWS. Therefore, the total of 81 items survey questions were adapted to obtain the respondents for SME manufacturing industry. Reliability analysis shows that all the HPWS dimensions have very good reliability with Cronbach’s alpha value range from 0.884 to 0.976. According to Tang et al (2014), Cronbach’s alpha range between 0.70 and 0.80 considered as good reliability whereby 0.80 and 0.90 considered as very good reliability. Result also showed that selective staffing has the highest mean score followed by employee participation, which are 3.951 and 3.833 respectively. This proved that selective staffing is most important critical success factor in the HPWS implementation for Malaysian SME manufacturing industry. Keywords: high performance work system, work engagement, innovative work behaviour, small and medium enterprise.

2017 ◽  
Vol 24 (4) ◽  
pp. 670-688 ◽  
Author(s):  
Muhammad Athar Rasheed ◽  
Khuram Shahzad ◽  
Christopher Conroy ◽  
Sajid Nadeem ◽  
Muhammad Usman Siddique

Purpose Employee voice has emerged as a strong predictor of positive organizational outcomes. Grounding the theoretical model in resource-based theory; this study conceptualizes how high-performance work system (HPWS) can enhance organizational innovation of small and medium enterprises (SMEs) through voice behaviors. Specifically, the purpose of this paper is to empirically test if employee voice mediates the relationship between HPWS and organizational innovation. Design/methodology/approach This study used a quantitative strategy and cross-sectional survey method for the collection of data from SMEs operating in Pakistan. A list of SMEs was obtained from the federal government organization responsible for the development of SMEs in Pakistan. A self-administered structured questionnaire was distributed and 239 randomly selected SMEs responded to the survey. Findings Findings confirmed the conceptualized model and revealed that HPWS was significantly and positively related to employee voice and organizational innovation. Employee voice was found as a significant predictor of organizational innovation and mediating factor in the relationship between HPWS and organizational innovation. Research limitations/implications This study is limited in terms of variables included in the conceptual model and relatively small size of the sample that was derived from a single federal organization. More variables and SMEs can be included in future studies to get broader results and, potentially, better findings. Practical implications SME managers/owners can design HR function in such a way that employees will be encouraged to raise their voice and participate more in the organization. Scholars should study voice behaviors distinct from citizenship behaviors. Originality/value This study is the first of its kind to conceptualize the relationship between HPWS, employee voice, and organizational innovation in SMEs of Pakistan.


Author(s):  
Mbayo Kabango Christian

Due to the pertinent question of development of micro small and medium enterprises (MSMEs) and self food supply over the world and especially in Africa, this paper intends to analyze the key characteristics of the Congolese MSMEs, the identification of the perceived critical success factors and their prioritization for accurate and well-oriented performance action. To respond to the focus issues of this paper, an investigation on 259 enterprises was made in Kinshasa and the critical success factor methodology was used to cease and categorize all perceived factors from entrepreneurs. From this, 45 identified CSFs emerged throughout the operational channel of MSMEs and where categorized into four groups which are externalities, strategy, finance and organization. The Analytical Hierarchy Process is used to prioritize these CSFs per operational channel sections which are supply chain, production and distribution. And findings show that the most critical path is the supply chain while the highest critical axis is the finance area followed respectively by strategy, externalities and organization axes.


2020 ◽  
Vol 27 (4) ◽  
pp. 1369-1398 ◽  
Author(s):  
Jitendra Pratap Singh ◽  
Pawan Kumar Chand ◽  
Amit Mittal ◽  
Arun Aggarwal

PurposeThe manufacturing industry is presently experiencing technological disruption on a global scale. Consequently, to tackle such disruption, firms are identifying a volatile, uncertain, complex and ambiguous (VUCA) scenario and seeking ways to counter it. Accordingly, this paper aims to investigate the employee performance through assessing organizational citizenship behaviour (OCB) among the shop floor employees of the fast-moving consumer goods (FMCG) industry where a high-performance work system (HPWS) has been implemented.Design/methodology/approachA descriptive research design was used in the study, and 395 shop floor employees working in leading multinational firms, with a minimum global turnover of US$1bn, were interviewed. These manufacturing firms were located in three industrial clusters in the northern part of India.FindingsThe results indicate that HPWS influences OCB. Most of the dimensions of HPWS and OCB were found to be positively associated. The findings also disprove the labour process theory in the context of the study.Practical implicationsThe findings report a broad view of the relationship between HPWS and OCB in the Indian manufacturing context. The study offers the practical insights that HPWS is a universally accepted framework and that organizations should focus on the effective implementation of HPWS in a VUCA scenario, which is in line with past studies. The study also provides future directions for research.Originality/valueThis paper has established the relationship between HPWS and OCB in the manufacturing sector, especially for shop floor employees.


2020 ◽  
Vol 01 (02) ◽  
pp. 115-128
Author(s):  
Akbar Zaman ◽  
Shahid Nawaz ◽  
Shaukat Ullah Khan

The high-performance work system, employees’ performance and resilience are the critical success factors for any organization. To examine the concepts in native environment, the data was collected from different sources likewise, secondary from online databases while primary through questionnaire. The population of study comprises teaching faculty working in HEIs in southern region, KP, Pakistan. Literature was analyzed by comparing and examining the views of diverse researchers on matters under study while first hand data was analyzed over statistical procedure (correlation, & regression) to observe linkages amid research variables. Mediation procedure was used to inspect mediating role of employees’ resilience. Results offer significant information about the relationships among variables like positive association, significant impact, and partial mediation. This study is likely to offer new literature, new methods and new implications for management of concerned institutions. Therefore, study in general may contribute in existing knowledge database and in specific to researcher in achieving the desired objectives behind the conduction of this particular research study.


2021 ◽  
Vol 13 (13) ◽  
pp. 7156
Author(s):  
Kyoung Jun Lee ◽  
Yu Jeong Hwangbo ◽  
Baek Jeong ◽  
Ji Woong Yoo ◽  
Kyung Yang Park

Many small and medium enterprises (SMEs) want to introduce recommendation services to boost sales, but they need to have sufficient amounts of data to introduce these recommendation services. This study proposes an extrapolative collaborative filtering (ECF) system that does not directly share data among SMEs but improves recommendation performance for small and medium-sized companies that lack data through the extrapolation of data, which can provide a magical experience to users. Previously, recommendations were made utilizing only data generated by the merchant itself, so it was impossible to recommend goods to new users. However, our ECF system provides appropriate recommendations to new users as well as existing users based on privacy-preserved payment transaction data. To accomplish this, PP2Vec using Word2Vec was developed by utilizing purchase information only, excluding personal information from payment company data. We then compared the performances of single-merchant models and multi-merchant models. For the merchants with more data than SMEs, the performance of the single-merchant model was higher, while for the SME merchants with fewer data, the multi-merchant model’s performance was higher. The ECF System proposed in this study is more suitable for the real-world business environment because it does not directly share data among companies. Our study shows that AI (artificial intelligence) technology can contribute to the sustainability and viability of economic systems by providing high-performance recommendation capability, especially for small and medium-sized enterprises and start-ups.


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