![]() ![]() It is assumed that the implementation of HPWS can improve the level of innovation and organizational commitment, and therefore promote entrepreneurial orientation (Gittell et al. Given the essential role of HPWS in performance, it is especially important to examine specific pathways through which this effect occurs. What is missing from the resource-based view is looking inside the process to explore how and why HPWS enhance corporate performance (Way and Johnson 2005 Wei and Lau 2010). As argued by Laursen and Foss ( 2003), the understanding of the relationship between HPWS and corporate performance needs to be extended. However, the extant literature on the intermediate linkage between HPWS and performance has yielded only limited insights into the influence of the use of HPWS on performance at the organizational level (e.g., Lee and Bang 2012). At the individual level, empirical studies suggest HPWS can improve personal performance such as job satisfaction, service quality, organizational citizenship behavior and information sharing (Cheng and Wang 2011 Sun et al. At the organizational level, scholars have verified the causal relationship between HPWS and corporate performance (Becker and Huselid 2006 Shin and Konrad 2017). Research on HPWS includes both organizational level and individual level studies. By breaking the traditional hierarchical management model, HPWS use flat organizational structures to provide staff with wide-ranging training, safe environments, management and competitive compensation, organizational identification and productivity, which lead to sustainable competitive advantages and long-term individual and organizational development (Pak and Kim 2016). As there is no agreement on the definition of this concept, it can generally be regarded as an organic combination of a series of coordinating and cooperating human resource management practices in order to enhance individual and organizational performance (Snell and Bohlander 2010). High performance work systems (HPWS) have been extensively discussed despite their brief history. Among the broad concepts of strategic human resources, high performance work systems stand out as reflecting the basic philosophy and practices of strategic human resource management and shape the attitudes, skills and behaviors of staff by discovering and utilizing knowledge, thereby achieving organizational goals (Chen 2009 Collins and Clark 2003). As valuable, rare and inimitable assets for organizations because of their firm-specific, socially complex and path-dependent characteristics, human resource practices help firms obtain sustainable competitive advantages (Collins and Clark 2003). Implications for practice and directions for future research are provided.Ĭonsidering employees as a key source of competitive advantage, strategic human resource management is gaining increasing importance in knowledge-based economies and rapidly changing environments (Prieto and Santana 2012 Sun et al. 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. Entrepreneurial orientation partially mediates the relationship between high performance work systems and organizational performance. 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. 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. ![]() An organization with high performance work systems can perform better if it enjoys high level of organizational learning. We propose that (HPWS) can positively affect organizational performance through the mediating role of entrepreneurial orientation. This study investigates the functioning mechanisms of how high performance work systems (HPWS) affect organizational performance.
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