Abstract
As an organization s strategy to manage the employment relationship, high-performance work system (HPWS) may lead to superior firm performance and favorable employee outcomes through cultivating the relational aspects of employee’s psychological contract. In this study, we investigated the processes (mediation and moderation) linking HPWS and outcomes at both the organizational and individual levels. Hierarchical linear modeling (HLM) analysis on a sample of 1129 employees from 92 firms in the Pearl River Delta of China indicated that HPWS was associated with increased firm performance and decreased turnover rate at the organizational level, and relational contract fully mediated the cross-level relationships between HPWS and employees affective commitment and in-role performance at the individual level. In addition, perceived supervisor support moderated the HPWS and relational contract relationship. We discuss theoretical and practical implications to end of this paper.
Published Version
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