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

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.