The impact of high-performance work systems on firm performance: The moderating effects of the human resource function’s influence

Abstract

With data collected from 632 manufacturing firms in South Korea, we investigated (1) the relationship between high-performance work systems (HPWSs) and firm performance, and (2) the moderating effect of the human resource (HR) function’s influence on the relationship between HPWSs and firm performance. Our findings showed the existence of both the main effect of HPWSs, supporting the universalistic perspective, and the moderating effect of the HR function’s influence, supporting the contingency perspective. Based on the findings, we concluded that HPWSs can be regarded as universal or best practices; at the same time, the presence of an influential HR function may intensify the effect of HPWSs on firm performance. This study contributes to the debate over the respective merits of the universalistic and contingency perspectives by showing that the two perspectives are not necessarily incompatible; rather, they can be complementary.

HRM and performance—The role of talent management as a transmission mechanism in an emerging market context

“…This consistency suggests that HRM is part of a cohesive and structured work environment. Lockett, Thompson, and Morgenstern (2009) posit that managers fail to understand the potential of the resources at their disposal, therefore emphasising the centrality of HRM expertise and their role in resource optimisation to further the strategic goals of the organisation (Jeong & Choi, 2016).…”

The Effect of the Degree of Misfit Between Human Resources Management Practices and the Types of Organizational Culture on Organizational Performance

“…Secondly, the universal approach may be effective in many cases (Zhang and Morris, 2014;Jeong and Choi, 2016). However, this research shows that when aspects of HRM practices do not fit with the types of organizational cultures, organizational performance will be negatively affected.…”

The effectiveness of high-involvement work practices in manufacturing firms: Does context matter?

“…Batt (2000) showed greater benefits from HIWPs among employees working with higher valued-added customers. Combs et al (2006) observed a higher impact of HIWPs in manufacturing than in service firms, and Jeong and Choi (2016) highlighted that the presence of an influential HR function can intensify the effect of HPWSs on firm performance.…”

“…This approach assumes that firms that achieve the best fit between the two types of variable – HR practices and contextual or contingency factors – will obtain better performance. Although the two approaches seem contradictory, it has also been argued that both have merit, that they may be complementary (Jeong & Choi, 2016) and that organizations benefit from attention to each (Rau, 2012). Youndt, Snell, Dean, and Lepak (1996) sustain that the universalistic approach helps researchers to document the benefits of HRM in any context, ceteris paribus , whereas the contingency approach allows them to carry out more in-depth analysis of organizational phenomena, facilitating the development of more specific theories on HRM from the contextual point of view, and allowing more precise findings on the use of HR practices.…”

“…Along these same lines, Becker and Gerhart (1996) argue that the universalistic and contingency approaches are not opposites but, rather, act at different levels in HRM systems, depending on the element analyzed (general principles/domains, policies and practices). Jeong and Choi note that ‘the main assumptions of the perspectives are neither antithetical nor mutually exclusive, and support for one perspective over another is ultimately an empirical issue’ (2016: 333).…”