High performance work systems and corporate performance: the influence of entrepreneurial orientation and organizational learning

Abstract

This study investigates the functioning mechanisms of how high performance work systems (HPWS) affect organizational performance. We propose that (HPWS) can positively affect organizational performance through the mediating role of entrepreneurial orientation. An organization with high performance work systems can perform better if it enjoys high level of organizational learning. 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. 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. Entrepreneurial orientation partially mediates the relationship between high performance work systems and organizational performance. 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. Implications for practice and directions for future research are provided.

Keeping millennials from quitting due to work stress: The roles of mattering, commitment and entrepreneurship orientation

“…The work of Zhu et al [20] explained that the relationship between entrepreneurial orientation partially mediates the relationship between high performance work systems and organizational performance, which suggested the significant contribution of the organizational commitment as the element of performance on entrepreneurial orientation. Confirming that, Marshall and Gigliotti in 2020 [19] explained that while entrepreneurial orientation might be started at younger age, it will be more polished within the organization.…”

“…In the recent pre-pandemic era, the main predictors of high turnover intention among millennials were either lower levels of organizational commitment due to mental perceived mental health-related issues [15]- [18] or high levels of entrepreneurial orientation [19], [20]. The two factors were significant because the millennials perceived that they deserve a better work-life balance, and that they have the skills required by the new companies; furthermore, many startup companies developed by millennials would prefer to hire millennial employees.…”

“…In other words, we hypothesized that employees who believe that they matter to their organizations would likely to be more committed to their organization, and therefore, would less likely to develop turnover intention. Literature also suggested the involvement of entrepreneurial orientation, because it is common among millennial employees and it was reported to be a significant predictor of turnover intention [19], [20], [29], [30]. The hypothetical model is illustrated in Figure 1.…”

High Performance Work System and Export Performance

“…Although, innumerable researches have been done on HPWS and performance (Úbeda-García, Claver-Cortés, Marco-Lajara, Zaragoza-Sáez, & García-Lillo, 2017;Zhu, Liu, & Chen, 2018) but still there are very limited researches that have been conducted on HPWS and export performance, specifically focusing on dimensions of HPWS. At the same time, there is lack of studies that focused on developing countries, especially in Pakistan's textile sector.…”

Quest for innovation : learning systems and innovativeness within a global staffing organization

“…However, despite these risks, research has shown innovation positively correlates to performance. Zhu, Liu, and Chen (2018) conducted an empirical study indicating the relationship between high-performing work systems and corporate performance and asserted the relationship is more positive when organizational learning is stronger, yielding more significant innovation. Relative to the global staffing industry there are many innovation trends that impact both the industry and its employees alike, which is covered in the next section.…”