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.
Limitations and further research
Despite the contributions of this study, there still remain some limitations, which may indicate avenues for future research. First, the sample resources can be improved. In this research, sample data is cross-sectional, which may not adequately reflect the causal relationship among variables. Future research can introduce panel data to avoid potential disadvantages. Second, the research level can be extended. This study explores the effect of HPWS on corporate performance at the organizational level. However, past research has found HPWS can also influence individual performance such as employee satisfaction, turnover rate, employee creativity, etc. Future studies may add employee performance as individual-level variables and adopt a hierarchical linear model to deeply explore the relationship between HPWS and corporate performance.
