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Relationship Between High-Performance Work Systems and Innovation Performance (Low-Level Employee’s Perception) with Mediating Role of Dynamic Capabilities and Moderating Role of Hierarchal Culture

Author

Listed:
  • Muhammad Munir

    (Department of Management & Administrative Sciences, University of Narowal, Pakistan)

  • Khadija Parvaiz

    (Department of Management & Administrative Sciences, University of Narowal, Pakistan)

  • Abid Hussain

    (Subject Specialist Commerce, SED Punjab, Pakistan)

Abstract

In this research, we examined theoretically how human resource practices such as high-performance work systems help build dynamic capabilities which enhance an organization's innovation performance. We also theorized that firms within a hierarchical culture where employees follow a structured system would not have a strong influence in transforming dynamic capabilities into innovation. We analyzed and tested our hypothetical model by using cross-sectional studies from 50 pharmaceutical companies in Pakistan. Our findings demonstrate that dynamic capabilities (DCs) serve as a mediator in the relationship between high-performance work systems and innovation performance (IP). Moreover, the association of dynamic capabilities (DCs) and innovation performance is found to be significantly moderated by hierarchical culture (IP). We found that the relationship of high-performance work systems innovation performance and dynamic capacities were not significantly influenced by hierarchical culture.

Suggested Citation

  • Muhammad Munir & Khadija Parvaiz & Abid Hussain, 2023. "Relationship Between High-Performance Work Systems and Innovation Performance (Low-Level Employee’s Perception) with Mediating Role of Dynamic Capabilities and Moderating Role of Hierarchal Culture," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(3), pages 211-220.
    • Handle: RePEc:rfh:bbejor:v:12:y:2023:i:3:p:211-220
    DOI: https://doi.org/10.61506/01.00026
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    References listed on IDEAS

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    1. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    2. Muller, Eitan & Peres, Renana, 2019. "The effect of social networks structure on innovation performance: A review and directions for research," International Journal of Research in Marketing, Elsevier, vol. 36(1), pages 3-19.
    3. Shu‐Mei Tseng, 2010. "The effects of hierarchical culture on knowledge management processes," Management Research Review, Emerald Group Publishing Limited, vol. 33(8), pages 827-839, July.
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