Walking the tightrope: Examining the role of high performance work systems on the achievement of high performance organization in the SMEs sector
Abstract
High performance work system (HPWS) has been viewed as a key to competitive
advantage and capable of creating differentiation while contributing to the
overall performance of the organization. However, recent developments, argued
that, in spite of the undeniable significance of HPWS to organizational
performance, the practices has not be extended to the context of small firms and
that researchers has not identified specific set of practices in HPWS that are
capable of facilitating organizational performance. In view of the above
argument, this study examines the role of HPWS practices in achieving high
performance within the small business sectors. Four dimensions of HPWP were
identified in this study and were assessed on a seven-point scale. Our data were
drawn from SMEs that have spent a minimum of ten years in the Nigeria
industry. Results showed that practices involved in HPWS positively influence
HPO. The findings showed that given the changing business environment,
managers need to develop a HPWS culture in their organizations. Thus, the
study has contributed to the enrichment of the literature on HPWS and HPO by
proposing a model that was empirically tested.