High Performance Work Systems And Firm Performance

Strategic human resource management demands high performance work system must serve the strategic goal of enterprise,creating competitive advantage through effective human resource management.As a basic problem in the field of Strategic human resource management,many researchers found that there is a positive relationship between high performance work system and firm performance,but there is lack of systematic explanation for the mechanism of high performance work system and firm performance.Researches on the mechanism of high performance work system and firm performance are mostly from the perspective of employee skills or employee behaviors but little research is from the perspective of employee attitudes.In addition,with the deepening of economic globalization,China's enterprises are facing the dynamic environment of economic transition and integration of the industry.Environmental characteristics of industry will inevitable influence the relationship of high performance work system and firm performance in this rapidly changing background,but there has not been pay attention on how the high performance work system influence firm performance in different environmental conditions.Specifically,this study proposes three hypotheses:(1)high performance work systems is positively correlated with firm performance;(2)employee goal interdependence in the enterprise level mediates the relationship between high performance work systems and firm performance;(3)degree of industry competition moderates the relationship between high performance work systems and firm performance,compared with that in a low degree of industry competition environment,the positive effect between high performance work systems and firm performance in a high degree of industry competition environment is stronger.By using regression analysis,this study based on a sample of 67 Chinese companies and 916 employees reveals that:(1)high performance work systems and firm performance have a significantly positive relationship;(2)employee goal interdependence in the enterprise level mediates the relationship between high performance work systems and firm performance;(3)degree of industry competition moderates the relationship between high performance work systems and firm performance,compared with that in a low degree of industry competition environment,the positive effect between high performance work systems and firm performance in a high degree of industry competition environment is stronger.This study discusses the mechanism between high performance work system and enterprise performance from the perspective of employee attitudes,and considers the influence on enterprises by changing of the environment under the background of economic transformation of China.This study not only complements the existing theory and also has a certain significance on the practice of business management.