Abstract
Are human resource management practices truly effective for improving firm-level innovation? and how are they related to employees’ well-being? The current study explores the relationship between high-performance work systems (HPWS), collective well-being, and innovation. By using a national population survey of 368 Korean firms, I found a significant indirect effect of HPWS on firm-level innovation through collective well-being. As a result, HPWS is an essential mechanism to improve firm-level innovation by fostering work environments where employees are valued and cared; therefore, they tend to put extra effort into firm-level innovation. Furthermore, I found significant moderating roles of organizational cultures that clan rather than market cultures increased the positive effects of HPWS on collective well-being and firm-level innovation. This empirical result suggests the importance of strategic fit between firm-level strategy and cultures to construct social and economic relationships between firms and employees.
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