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How and when matter: Exploring the interaction effects of high‐performance work systems, employee participation, and human capital on organizational innovation
Author(s) -
Zhou Yu,
Fan Xueqing,
Son Jooyeon
Publication year - 2019
Publication title -
human resource management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.888
H-Index - 94
eISSN - 1099-050X
pISSN - 0090-4848
DOI - 10.1002/hrm.21950
Subject(s) - business , human capital , human resource management , contingency , corporate governance , organizational performance , work systems , organizational commitment , employee voice , organizational behavior and human resources , human resources , employee research , work (physics) , knowledge management , industrial organization , public relations , marketing , economics , management , finance , political science , market economy , mechanical engineering , computer science , engineering , linguistics , philosophy
Existing research on the relationship between high‐performance work systems (HPWS) and organizational innovation has paid insufficient attention to the boundary effects of employee participation and human capital. Bridging the human resource management (HRM) and employment relations literature, this study contributes to the contingency view of HRM and China‐specific research by investigating how human capital and employee participation, direct voice mechanism, and corporate governance participation jointly moderate the relationship between HPWS and organizational innovation. We test our three‐way interaction model using a sample of 108 firms and 1,250 employees in China. The results suggest that HPWS are positively associated with organizational innovation when employees with relatively less human capital are coupled with more direct voice mechanism or less corporate governance participation. In contrast, HPWS are negatively related to organizational innovation when employees possessing greater human capital are coupled with more direct voice mechanism. The theoretical and managerial implications and future research directions are discussed.