Unpacking the relationship between high-performance work systems and innovation performance in SMEs

Khuram Shahzad*, Pia Arenius, Alan Muller, Muhammad Athar Rasheed, Sami Ullah Bajwa

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

21 Citations (Scopus)
465 Downloads (Pure)

Abstract

Purpose
The purpose of this paper is to explore the black box between high-performance work systems (HPWS) and innovation performance in small- and medium-sized enterprises (SMEs). Through application of the ability, motivation and opportunity (AMO) framework, the study examines the mediating roles of innovation-specific ability, motivation and voice behaviors between HPWS and SMEs’ innovation performance.

Design/methodology/approach
The hypotheses are tested on data collected through a self-administered questionnaire from 237 SMEs in Pakistan.

Findings
Findings indicate that human capital, motivation and employee voice fully mediate the relationship between HPWS and innovation performance in SMEs.

Research limitations/implications
The cross-sectional research design and self-reported measures warrant caution for the interpretation of findings. Future research may consider a longitudinal research design and objective measures.

Practical implications
SMEs need to invest in the adoption and implementation of HPWS that will develop innovation-specific abilities, motivation and voice behaviors simultaneously among employees that will lead to higher innovation performance.

Originality/value
This is the first study of its kind utilizing an AMO framework to investigate the underlying mechanism through which HPWS affect innovation performance in SMEs.
Original languageEnglish
Pages (from-to)977-1000
Number of pages24
JournalPersonnel Review
Volume48
Issue number4
Early online date3-May-2019
DOIs
Publication statusPublished - 4-Jun-2019

Keywords

  • Innovation
  • Quantitative
  • Employee voice
  • High-performance work systems
  • Small- to medium-sized enterprises (SME)
  • The ability
  • motivation and opportunity framework
  • HUMAN-RESOURCE MANAGEMENT
  • MEDIUM ENTERPRISES SMES
  • HIGH-TECH SMES
  • EMPLOYEE VOICE
  • ORGANIZATIONAL PERFORMANCE
  • FIRM PERFORMANCE
  • KNOWLEDGE MANAGEMENT
  • LABOR PRODUCTIVITY
  • MEDIATING ROLE
  • PSYCHOLOGICAL EMPOWERMENT

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