Abstract
This study investigates the functioning mechanisms of how high performance work systems (HPWS) affect organizational performance. We propose that (HPWS) can positively affect organizational performance through the mediating role of entrepreneurial orientation. An organization with high performance work systems can perform better if it enjoys high level of organizational learning. We design and administer a survey questionnaire to high-level executives or founders of companies from manufacturing and service industries and receive 176 valid responses. The results of the empirical data indicate that the relationship between high performance work systems and corporate performance is more positive when organizational learning is stronger. Entrepreneurial orientation partially mediates the relationship between high performance work systems and organizational performance. This study opens new research avenues by extending and incorporating explanations and predictions of HPWS and entrepreneurial orientation, two areas that largely have been considered independently of each other. Implications for practice and directions for future research are provided.
Highlights
Considering employees as a key source of competitive advantage, strategic human resource management is gaining increasing importance in knowledge-based economies and rapidly changing environments (Prieto and Santana 2012; Sun et al 2007)
In line with the resourcebased view (Barney 1991) and organizational learning literature, we propose that organizational learning can be the moderator in the link between High performance work systems (HPWS) and corporate performance
HPWS help promote corporate performance by raising the corporate entrepreneurial orientation level. Based on this discussion of HPWS, entrepreneurial orientation and corporate performance, we propose Hypothesis 3 in the following statement: Hypothesis 3: Entrepreneurial orientation mediates the relationship between high performance work systems and corporate performance
Summary
Considering employees as a key source of competitive advantage, strategic human resource management is gaining increasing importance in knowledge-based economies and rapidly changing environments (Prieto and Santana 2012; Sun et al 2007). Rare and inimitable assets for organizations because of their firm-specific, socially complex and path-dependent characteristics, human resource practices help firms obtain sustainable competitive advantages (Collins and Clark 2003). Among the broad concepts of strategic human resources, high performance work systems stand out as reflecting the basic philosophy and practices of strategic human resource management and shape the attitudes, skills and behaviors of staff by discovering and utilizing knowledge, thereby achieving organizational goals (Chen 2009; Collins and Clark 2003). Zhu et al Frontiers of Business Research in China (2018) 12:4 generally be regarded as an organic combination of a series of coordinating and cooperating human resource management practices in order to enhance individual and organizational performance (Snell and Bohlander 2010). By breaking the traditional hierarchical management model, HPWS use flat organizational structures to provide staff with wide-ranging training, safe environments, management and competitive compensation, organizational identification and productivity, which lead to sustainable competitive advantages and long-term individual and organizational development (Pak and Kim 2016)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
