Examining the Adoption and Effects of High-Performance Work Systems

Drawing on resource orchestration theory, we proposed a moderated mediation model of the processes linking unabsorbed slack to the organizational outcomes of operational performance and labor productivity. Specifically, using a nationally representative survey data from South Korea, we examined (i) the moderating influence of top management human resource (HR) emphasis on the relationship between unabsorbed slack and the adoption of high-performance work systems (HPWS) and (ii) the conditional effect of perceived HR effectiveness on the indirect effects of HPWS on the two organizational outcomes through overall job attitude. The results of our analyses showed that: (i) top management HR emphasis moderated the relationship between unabsorbed slack and the adoption of HPWS such that this relationship was stronger when top management HR emphasis was high but not low, and (ii) HPWS indirectly related to operational performance but not labor productivity through overall job attitude when perceived HR effectiveness was high but not low. In sum, our results supported the two-stage moderated mediation of the relationship between unabsorbed slack and operational performance but not labor productivity. We interpreted these findings as underscoring the utility of resource orchestration theory in explicating variability in the adoption of HPWS which, in turn, develops the human resource-related internal capability leading to sustained competitive advantage.