Abstract
Despite an enduring interest in the effect of high-performance work practices (HPWP) on organizational outcomes, relatively little is known about how the human resources practices that engage employees in a coordinated effort foster relational coordination competencies, and further enhance organizational innovativeness. Drawing on the relational model of HPWP, this study examined the impact of HPWP on organizational innovativeness through employees’ relational coordination competencies, and the moderating effect of environmental volatility on the relationship. Using two-wave panel data from 301 manufacturing companies in South Korea, the results showed that HPWP positively influenced organizational innovativeness, as measured by the number of patent applications with a 6-year time lag, and that the link was partially mediated by employees’ relational coordination competencies. The positive effect of HPWP on organizational innovativeness was more pronounced when market turbulence was high. This study adds value to the HPWP literature by revealing the importance of human resource practices that develop employees’ relational coordination and communication competencies in achieving organizational innovativeness. Such practices are becoming even more crucial in today’s complex business environment, which necessitates task integration and employee cooperation.
Highlights
The idea that human capital is a primary source of firm competitive advantage has increasingly gained prominence [1,2]
This study contributes to the high-performance work practices (HPWP) literature in two ways. By incorporating both relational coordination and increased human capital value perspectives through which HPWP lead to organizational outcomes [6,8], we reveal how the two perspectives can together explain the positive effects of HPWP on organizational innovativeness
The present study investigated the effect of HPWP on organizational innovativeness through employee relational coordination competencies, and examined how market turbulence strengthened the positive relationship between HPWP and organizational innovativeness
Summary
The idea that human capital is a primary source of firm competitive advantage has increasingly gained prominence [1,2]. The focus on human capital has led to an increased attention to high-performance work practices (HPWP) as ways to enhance the value of human capital [3]. With an emphasis on high-commitment, high-involvement human resource (HR) strategies, the notion of HPWP involves “a group of separate but interconnected HR practices that together recruit, select, develop, motivate, and retain employees” [3] One perspective takes an approach that HPWP contribute to firm performance by increasing the value of human capital through the hiring of high-caliber candidates and developing their knowledge and skills [8,9]. HPWP, including selective hiring, rigorous training, competitive compensation which helps recruiting, and job rotation as an opportunity to learn, altogether ensure the attainment
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