Ability–motivation–opportunity enhancing human resource practices and firm performance: Evidence from India

Abstract

AbstractThis study investigates the diverse performance outcomes related to the bundles/components of high-performance work systems on the basis of ability–motivation–opportunity model. Using the primary data from 563 employees of 204 firms operating in India (collected during the time period between March, 2012 and January, 2013), the study has indicated that employees’ perceptions regarding the applicability of ability-enhancing, motivation-enhancing, and opportunity-enhancing human resource practices result in enhanced affective commitment and superior firm performance. The results have revealed that affective commitment fully mediates the relationship of opportunity-enhancing human resource practices with firm performance and partially mediates the relationships of ability-enhancing and motivation-enhancing human resource practices with firm performance. The study contributes in unlocking the ‘black box’ related to the high-performance work systems and firm performance relationship by stressing upon the importance of affective commitment as a mediator. Managerial implications and directions for future research are also discussed.