An empirical investigation on the relationship between a high-performance work system and employee performance: measuring a mediation model through partial least squares-structural equation modeling.

Abstract

Background: This study aimed to investigate the effect of a high-performance work system (HPWS) on employee performance and the intervening role of mediators in this relationship. Methods: The study was quantitative in nature and used a questionnaire as its instrument. Two hundred and fifty respondents from the private textile sector, located in Lahore and Faisalabad, Pakistan, were selected using a stratified sampling technique. For statistical analysis and to test the proposed research model, partial least squares-structural equation modeling was applied. Results: HPWS was positively related to employee performance. Furthermore, job satisfaction, perceived organizational support, and employee engagement positively and significantly mediated between HPWS and employee performance. Thus, the study provided evidence for the underpinning models of social exchange theory, and ability, motivation, and opportunity framework. Conclusion: The study emphasizes that practitioners should develop strategies that could foster positive work attitudes and increase perceived organizational support to achieve higher levels of performance. It further describes some limitations and gaps for future research.