This study aims to examine the intermediary roles of employee performance between high performance work system (HPWS) and its operational performance on the resource based view. Taking into account the unit of analysis, this study used a hierarchical ...
This study aims to examine the intermediary roles of employee performance between high performance work system (HPWS) and its operational performance on the resource based view. Taking into account the unit of analysis, this study used a hierarchical linear modeling analysis in order to test rigorously the association between HPWS at the organisational level and employee performance at the individual level. For this empirical test, Human Capital Corporate Panel (HCCP) data including 316 firms and 7,872 respondents (including 923 team leaders) were used. To meet the unit of analysis and test the mediation effect, data at the individual and team level were aggregated into the organisational level. The empirical results show that HPWS have a positive impact on operational performance as well as employee performance such as job satisfaction, organisational commitment and organisational trust. Regarding the mediation effect, job satisfaction and organisational trust mediate between HPWS and operational performance. Theoretical implications are discussed in conclusion.