The role of high-performance work system and human capital in enhancing job performance

Pages195-206
Published date18 April 2020
Date18 April 2020
DOIhttps://doi.org/10.1108/WJEMSD-09-2019-0074
AuthorRabia Imran,Tariq Mohammed Salih Atiya
Subject MatterStrategy,Business ethics,Sustainability
The role of high-performance work
system and human capital in
enhancing job performance
Rabia Imran and Tariq Mohammed Salih Atiya
Department of Management, College of Commerce and Business Administration,
Dhofar University, Salalah, Oman
Abstract
Purpose The aim of the current research is to examine how job performance is affected byhigh-performance
work system (HPWS) and human capital. Furthermore, the research focuses on exploring the mediating role
played by human capital in HPWS and job performance relationship.
Design/methodology/approach Data was collected from service sector employees. A sample of 400
respondents was selected from the chosen population using purposive sampling.
Findings The results reveal that HPWS and human capital positively and significantly affect job
performance. The impact of HPWS in creating human capital was also supported. The research also
hypothesized mediating role played by human capital in HPWS and job performance relationship, and it was
partially supported.
Originality/value Recent literature is evident of the relationship between performance and HPWS;
however, the mechanism between these variables is still unclear (Demirbag et al., 2014). There is a need of
identifying the factors that strengthen this relationship. The current research is an attempt to fill this gap by
examining the effect of HPWS on job performance. Furthermore, it explores the role played by human capital in
strengthening the connection of HPWS and job performance.
Keywords Human capital, Job performance, High-performance work system (HPWS)
Paper type Research paper
Introduction
High-performance work system (HPWS) is considered as an essential factor influencing the
performance-related outcomes. Organizations invest heavily in developing such systems in
order to boost performance (Combs et al., 2006). It is defined as a system that is integrated and
bundles different HR practices (Evans and Davis, 2005). These HR practices should be
separate but interconnected and should act as a system (Appelbaum et al., 2000;Boxall and
Macky, 2009). The system developed by bundling of HR practices has an important effect on
performance (Raineri, 2017). A lot of researchers recently are focusing on the performance
outcomes and HPWS relationship (Imran et al., 2015;Imran and Shahab, 2018).
Recent literature is evident of the relationship between HPWS and performance; however,
the mechanism between these variables is still unclear (Demirbag et al., 2014). There is a need
of identifying the factors that strengthen this relationship. The bundle of HR practices cannot
do wonders alone. In order to attain performance outcomes, the contributions made by people
selected, trained and developed through such practices are very important. Improved
performance is of extreme importance for the organizations; thus, they are redesigning their
strategies to develop human resources (Harpan and Draghici, 2014). Human capital approach
assumes that organizations adopt HPWS, which helps in human capital creation, thus
resulting in increased performance (Wright et al., 2001). The research in this area is still
scarce, and a lot of exploration needs to be done to identify this relationship (Hsu et al., 2007;
Jiang et al., 2012;Raineri, 2017). Majority of research in this area is in Western context
ignoring the Middle Eastern context that has a lot of potential for growth. Researchers have
started focusing on the gulf area that is composed of six member states including Saudi
Arabia, UAE, Oman, Bahrain, Kuwait and Qatar. However, only few empirical research
High-
performance
work system and
job performance
195
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/2042-5961.htm
Received 26 September 2019
Revised 12 February 2020
Accepted 23 February 2020
WorldJournal of Entrepreneurship,
Managementand Sustainable
Development
Vol. 16 No. 3, 2020
pp. 195-206
©Emerald PublishingLimited
2042-5961
DOI 10.1108/WJEM SD-09-2019-007 4

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