High Performance Work Systems Reality in Multinational Subsidiaries: Lessons from South Eastern European Periphery

Loukas K Tsironis

doi:10.33166/acdmhr.2021.01.005

Abstract

Recently, a number of studies have focused on the positive relationship between high-performance work systems (HPWS) and organizational performance and its underlying mechanisms. European countries in general and former communist countries is particular have been largely overlooked. It seems crucial to assess the importance of HPWS and its impact on organizational performance in MNC subsidiaries operating in the region. The study examines the sequential mediation of job satisfaction and organizational citizenship behavior (OCB) in the HPWS-organizational performance link. Quantitative data was collected from 181 participants working in MNC subsidiaries operating in the Balkan region (Romania, Serbia, Bulgaria, Albania, FYROM, and Kosovo). The study employed Baron and Kenny (1986) approach to mediation analysis. Findings showed a positive relationship between HPWS and organizational performance. OCB had a partial mediating value in the HPWS performance link. Similarly, job satisfaction partially mediates the relationship between HPWS and organizational performance.

Highlights

Since its introduction in literature, the notion of high-performance work systems (HPWS) has attracted attention both from human resource (HR) research as well as practitioners due to its impact on employee and organizational performance (e.g. Camps & Luna-Arocas, 2010; Fey et al, 2009; Delaney & Huselid, 1996; Huselid, 1995; Ngo & Foley, 2011; Takeuchi, Lepak and Chen, 2009; Takeuchi et al, 2007)
Studies reported the interactions of factors such as organizational citizenship behavior (OCB) (Buentuello et al, 2008), job satisfaction (Crossman and Zaki, 2003), and national culture (Fey, 2005) in the HPWS organizational financial performance link
We found that HPWS predicts organizational performance

Summary

Introduction

Since its introduction in literature, the notion of high-performance work systems (HPWS) has attracted attention both from HR research as well as practitioners due to its impact on employee and organizational performance (e.g. Camps & Luna-Arocas, 2010; Fey et al, 2009; Delaney & Huselid, 1996; Huselid, 1995; Ngo & Foley, 2011; Takeuchi, Lepak and Chen, 2009; Takeuchi et al, 2007). Critics of HPWS argue that the practices are a way to oppress even further the employee by increasing workload, work stress, and managerial control (Godarg, 2004; Guest, 2002) while HPWS advocate maintain that HPWS is associated with increased employee motivation (e.g. Fey, 2005), job satisfaction (Bashir et al, 2011), or organizational learning capability (Camps and Luna-Arocas, 2010).

Objectives

Methods

Findings

Conclusion