High performance work system and organisational performance: role of knowledge management

Abstract

Purpose

The purpose of this paper is to explore the high performance work system through ability, motivation and opportunity model (Jiang et al., 2013) and its impact on organisational performance. Further, the mediating role of knowledge management between high performance work system and organisational performance has also been evaluated.

Design/methodology/approach

Questionnaire technique has been used to collect the data from managers (n=58) and employees (n=246) working in telecommunication organisations in Jammu and Kashmir (North India). Data collected have been validated using the exploratory factor analysis and confirmatory factor analysis. Hypotheses have been tested through structural equation modelling with the help of AMOS and SmartPLS3 softwares. Further, theoretical, managerial and socio-economic implications have also been discussed.

Findings

The study indicates that high performance work system positively affects organisational performance. Further, knowledge management act as a mediator between high performance work system and organisational performance.

Research limitations/implications

The study has been conducted only in the private telecommunication sector (Airtel, Aircel, Tata Indicom, Idea, Reliance, Vodafone). Further, the study being limited to telecommunication sector can be extended in other sectors also.

Practical implications

In order to create superior work system, management should focus on ability-enhancing initiatives such as extensive job training, computer-based training, etc. on regular basis. Employees should be rewarded extrinsically as well as intrinsically to keep them motivated to achieve higher levels of performance. Further, management should empower the employees through decentralisation of authority, participative decision making, etc. Besides this, management should also instil the knowledge culture in the organisation in order to enhance the knowledge capability of the employees.

Originality/value

This study contributes to the literature by identifying the black box using knowledge management to understand the relationship between high performance work system and organisational performance in the telecommunication sector.

Citation

Jyoti, J. and Rani, A. (2017), "High performance work system and organisational performance: role of knowledge management", Personnel Review, Vol. 46 No. 8, pp. 1770-1795. https://doi.org/10.1108/PR-10-2015-0262