Do performance measures matter in the relationship between high-performance work system and organizational performance?
International Journal of Manpower
ISSN: 0143-7720
Article publication date: 11 December 2019
Issue publication date: 19 May 2020
Abstract
Purpose
The purpose of this paper is to develop a resource-based framework to explain the relationship between high-performance work system (HPWS) and organizational performance (OP) and the moderating role of performance measures.
Design/methodology/approach
The paper takes a meta-analysis approach, and tests hypotheses against data of 47,741 firms and establishments in 192 studies published by June 2016.
Findings
The paper finds that HPWS has a greater positive effect on operational than financial performance. Moreover, HPWS influences operational performance more strongly in developing than advanced countries and at the firm level than the establishment level, but such variations are not evident in the effect of HPWS on financial performance.
Practical implications
The paper suggests that managers should treat human resource management (HRM) practices as a system, and develop HPWS for operational gains which in turn lead to financial gains. Managers need to take different approaches to develop HPWS for high performance depending on the country of origin and the level of organization.
Originality/value
Based on studies of individual HRM practices, previous meta-analytical studies suggested that the HPWS-OP relationship is invariant across performance measures. Taking HRM practices as integral components of HPWS, this paper extends the resource-based theory to demonstrate that performance measures interact with country of origin and level of analysis to moderate the HPWS-OP relationship.
Keywords
Acknowledgements
The authors would like to thank several authors, including Dr Tanja Rabl, Dr Joseph A. Schmidt and Dr Javier Martiìnez-del-Riìo, for providing the authors with their research papers. The authors also would like to thank two anonymous reviewers for very valuable comments and suggestions, and Professor Martin Kahanec for very helpful editorial guidance in the review process.
Citation
Zhai, X. and Tian, X. (2020), "Do performance measures matter in the relationship between high-performance work system and organizational performance?", International Journal of Manpower, Vol. 41 No. 3, pp. 241-257. https://doi.org/10.1108/IJM-04-2018-0136
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited