High-performance work practices and entrepreneurial firm performance: the moderating role of firm size and industry type

Abstract

PurposeThis paper examines the moderating role of firm size (FS) and industry type in the relationship between high-performance work practices (HPWPs) and entrepreneurial firm performance.Design/methodology/approachA descriptive research design involving a five-year dataset from firms in the retail and services industries of Nigeria was used in the analyses.FindingsThe use of HPWPs is widespread among entrepreneurial firms, with ability- and motivation-enhancing practices being dominant. Country context influences the types of HPWPs implemented by entrepreneurial firms. FS and industry type do not have significant moderating effects on the relationship between HPWPs and the performance of entrepreneurial firms. The positive effect of HPWPs on performance is consistent with findings made in prior studies.Research limitations/implicationsFS plays a neutral role in the relationship between HPWPs and entrepreneurial firm performance. Within the broader retail and services industries, this relationship is weaker in capital-intensive firms compared to less capital-intensive ones. The restricted focus on only retail and service industries may limit the universal applicability of the findings.Practical implicationsFindings indicate that the efficacy of HPWPs is neither influenced by FS nor industry type. Entrepreneurial firms with higher capital intensity benefit relatively more from the use of HPWPs.Originality/valueUnlike other research efforts focusing on a single moderating influence, this study combines two important contextual factors, FS and industry type, to provide a better understanding of HPWPs. The study spotlights the effects of country context in the implementation of HPWPs in a way that prior studies have not done.