A Survey on the Impact of HPWS on Labor Productivity in Service SMEs: Mediating Role of Social Capital and Knowledge Exchange and Combination
Subject Areas : Human resources management)Iman Hakimi 1 , Morteza Moradi 2 , Abbas Shoul 3
1 - Associate Professor, Department of Public Administration, Payame Noor University, Tehran, Iran
2 - Associate Professor, Department of Public Administration, Payame Noor University, Tehran, Iran
3 - Associate Professor, Department of Industrial Management, Vali-e-Asr University, Rafsanjan, Iran
Keywords: Social capital, Labor Productivity, high performance work system, knowledge exchange and combination,
Abstract :
The present study aimed at opening up the black box on how high-performance work systems affect labor productivity by investigating the mediating role of social capital and knowledge exchange and combination. The statistical population consisted of managers and employees of professional services companies in Tehran metropolis in 2018. To collect the data, 800 standard questionnaires were distributed directly or via email among the sample who were recruited through random sampling, out of which 461 completed questionnaires (57.6%) were received. After confirming the validity and reliability of the collected data, the research hypotheses were analyzed using structural equation modeling using SPSS and SmartPLS2 softwares. The findings show that a high-performance work system has a positive effect on labor productivity. In addition, the mediating roles of social capital (with the impact intensity of 0.48) and knowledge exchange (with the impact intensity of 0.22) in the relationship between high performance work systems and labor productivity were confirmed. It can also be argued that social capital has a positive and significant effect on the development of the process capabilities of knowledge exchange and combination in the organizations studied.
Alguezaui, S., & Filieri, R. (2010). Investigating the role of social capital in innovation: sparse versus dense network. Journal of knowledge management, 14(6), 891-909.
Anand, N., Gardner, H. K., & Morris, T. (2007). Knowledge-based innovation: Emergence and embedding of new practice areas in management consulting firms. Academy of Management Journal, 50(2), 406-428.
Ananthram, S., Xerri, M. J., Teo, S. T., & Connell, J. (2018). High-performance work systems and employee outcomes in Indian call centres: a mediation approach. Personnel Review, 47(4), 931-950.
Bameri, N., & Keshtegar, A., & Mehdi Beigi, N. (2018). Impact of eHRM Functions on Organizational Innovation with the Mediating Role of knowledge Combination and Exchange. Public Management Research, 11(41), 139-164, (In Persian).
Besley, T., & Coate, S. (2015). Group lending, repayment incentives and social collateral. Journal of development economics, 46(1), 1-18.
Boroumand Kakhaki, A., & Akhavan, A. (2017). Challenges and Requirements for Development of Knowledge Combination and Exchange at National Petrochemical Company. HRM in the Oil Industry, 9 (35), 187-211, (In Persian).
Boxall, P., Ang, S. H., & Bartram, T. (2011). Analysing the ‘black box’of HRM: Uncovering HR goals, mediators, and outcomes in a standardized service environment. Journal of Management Studies, 48(7),1504-1532.
Cabrera, A., Collins, W. C., & Salgado, J. F. (2006). Determinants of individual engagement in knowledge sharing. The International Journal of Human Resource Management,17(2), 245-264.
Cafferkey, K., & Dundon, T. (2015). Explaining the black box: HPWS and organizational climate. Personnel Review, 44(5), 666-688.
Chang, C. W., Huang, H. C., Chiang, C. Y., Hsu, C. P., & Chang, C. C. (2012). Social capital and knowledge sharing: effects on patient safety. Journal of advanced nursing, 68(8), 1793-1803.
Čiarnienė, R., Vienažindienė, M., & Adamonienė, R. (2018). Implementation of Flexible Work Arrangements for Sustainable Development. Journal of Sustainable Development, 7(4), 11-21.
Collins, C. J., & Smith, K. G. (2006). Knowledge exchange and combination: The role of human resource practices in the performance of high-technology firms. Academy of management journal, 4(3), 544-560.
Davar, S. C., & Parti, M. (2013). Does training affect productivity of employees? Two methods of meta-analysis. Indian Journal of Industrial Relations, 48(4), 651-662.
Dehgani, A., Raghighi Asli, A., & Pourvali, F. (2015). The Effect of In-Service Training on Employee Empowerment and Job Performance in an Insurance Company. Insurance Research, 30(2), 35-60, (In Persian).
Drummond, I., & Stone, I. (2007). Exploring the potential of high performance work system in SMEs. Employee Relations, 29(2), 192-207.
Ebili, Kh., & Zare Khalili, M. (2013). The Relationship between Organizational Social Capital and Knowledge Management in a Public Insurance Company. Insurance Reserches, 28(2), 129-152, (In Persian).
Evans, W. R., & Davis, W. D. (2005). High-performance work systems and organizational performance: The mediating role of internal social structure. Journal of management, 31(5), 758-775.
Feghhi Farahmand, N., and Zanjani, S. (2013), The Examinitaion Of Realationship Between Employees Conceptions From Dimention Of Work Ethic With Job Satisfaction And Job Stress( Case study: Technical Training Organization), Journal Of Sociology Studies, 5(18), 103-118. (In Persian).
Fornell, C. & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research,18(1), 39-50.
Frimpong, J., Helleringer, S., Awoonor‐Williams, J., Yeji, F., & Phillips, J. (2011). Does supervision improve health worker productivity? Evidence from Upper East Region of Ghana. Tropical Medicine & International Health, 16(10),1225-1233.
Fu, N., Ma, Q., Bosak, J., & Flood, P. (2015). Exploring the relationships between HPWS, organizational ambidexterity and firm performance in Chinese professional service firms. Journal of Chinese Human Resource Management, 16(1), 52-70.
Gelderman, C. J., Semeijn, J., & Mertschuweit, P. P. (2016). The impact of social capital and technological uncertainty on strategic performance: The supplier perspective. Journal of Purchasing and Supply Management, 22(3), 225-234.
Ghiasi Nadoushan, S., & Amin al-Raaya, A. (2016). Effect of Social Capital & Intellectual Capital on HR Productivity. Management Studies, 25(80), 183-209, (In Persian).
Gittell, J. H., Seidner, R., & Wimbush, J. (2010). A relational model of how HPWS work. Organization science, 21(2), 490-506.
Greve, A., Benassi, M., & Sti, A. D. (2010). Exploring the contributions of human and social capital to productivity. International Review of Sociology, 20(1), 35-58.
Hosseini Sarkhosh, S. M., & Akhavan, P. (2016). Role of Social Capital in Promoting Knowledge Sharing and Employee Productivity in Knowledge Based Industrial Organizations. Productivity Management, 10(38), 33-61, (In Persian).
Iranzadeh, S and Zanjani, S (2012), The Relationship between Psychological Empowerment and Participatory Management of Female Teachers (Case Study), woman & study of family, 4(14), 65-83. (In Persian).
Iranzadeh, S., Fakhimi Azar, S., & Jedari Sefidgari, A. (2015). Effect of KM Components on HR Productivity Using Factor Analysis Method in Financial and Credit Institutions of Tabriz. Productivity Management, 9(33), 27-45, (In Persian).
Jesarati, A., Babazadeh, H., Zanjani, S., Jesarati, A., Azizi, H., Rezapur, A. (2013), An investigation of the relationship between motivational factors and performance of education staff, European Journal of Experimental Biology, 3(3), 681-686.
Jiang, J. Y., & Liu, C. W. (2015). High performance work systems and organizational effectiveness: The mediating role of social capital. Human Resource Management Review, 25(1), 126-137.
Jyoti, J., & Rani, A. (2017). Hpws and organisational performance: Role of knowledge management. Personnel Review, 46(8), 1770-1795.
Kamali, Y. (2014). The Role of Decentralization in The Realization of Administrative Health. Strategic & Macroeconomic Policies Quarterly, 2(5), 111-132, (In Persian).
Kengatharan, N. (2019). A knowledge-based theory of the firm: Nexus of intellectual capital, productivity and firms’ performance. International Journal of Manpower.
Khezrpour, Kh., Maziari, M., & Sabounchi, R. (2014). Relationship between Social Capital and Productivity of Sport and Youth Offices of West Azerbaijan Province. Human Resource Management in Sport, 1(2), 147-156, (In Persian).
Lanfredi, M., Zoppei, S., Ferrari, C., Bonetto, C., Van Bortel, T., Thornicroft, G., ... & ASPEN Study group. (2015). Self-stigma as a mediator between social capital and empowerment among people with major depressive disorder in Europe: The ASPEN study. European Psychiatry, 30(1), 58-64.
Mathew, J., Ogbonna, E., & Harris, L. C. (2012). Culture, employee work outcomes and performance: An empirical analysis of Indian software firms. Journal of World Business, 47(2), 194-203.
Michaelis, B., Wagner, J. D., & Schweizer, L. (2015). Knowledge as a key in the relationship between high-performance work systems and workforce productivity. Journal of Business Research, 68(5), 1035-1044.
Mihail, D., & Kloutsiniotis, P. (2016). The effects of high-performance work systems on hospital employees' work-related well-being: Evidence from Greece. European Management Journal, 34(4), 424-438.
Mohammadi, R., Honari, H., & Keshkar, S. (2014). Relationship between Subsystems of Knowledge Combination & Exchange in Learning Organization & HR Productivity in Selected Sports Federations. Sport Management, 6(1), 57-74, (In Persian).
Mohebifar, R., Khodabakhshian, M., & Rafiei, S. (2016). The effect of organizational reward on staff performance with the mediating role of motivation in teaching hospitals of Qazvin. Health-Focused Research, 1(1), 223-232, (In Persian).
Monks, K., Kelly, G., Conway, E., Flood, P., Truss, K., & Hannon, E. (2013). Understanding how HR systems work: the role of HR philosophy & HR processes. Human resource management journal, 23(4), 379-395.
Nahapiet, J., & Ghoshal, S. (1998). Social capital, intellectual capital, and the organizational advantage. Academy of management review, 23(2), 242-266.
Patel, P. C., & Conklin, B. (2012). Perceived labor productivity in small firms—the effects of HPWS and group culture through employee retention. Entrepreneurship Theory and Practice, 36(2), 205-235.
Patel, P., Messersmith, J., & Lepak, D. (2013). Walking the Tightrope: An Assessment of the Relationship between HPWS and Organizational Ambidexterity. Academy of Management Journal, 56(5), 1420–1442.
Piran, M., Agajani, T., Shoghi, B., Rezazadeh, A., & Dehghan Najmabadi, A. (2012). The Effect of Social Capital on Employee Creativity in Iranian Casting Industries. Innovation and Creativity in Humanities, 2(1), 163-182, (In Persian).
Portes, A., & Sensenbrenner, J. (2015). Embeddedness & immigration: Notes on the social determinants of economic action. American journal of sociology, 98(6), 1320-1350.
Rahman Seresht, H., & Jabbarzadeh Karbasi, B. (2017). The Effect of HRM Measures on Dimensions of Social Capital and Strategic Performance of SMEs. Transformation Management Research, 9(18), 1-23, (In Persian).
Rajabi Farjad, H. (2016). Investigating the mediating role of KM in relationship between HRM and innovation. HRM Research, 8(3), 239-265, (In Persian).
Rajabi, M., Hassani, M., & Mohajerani, B. (2016). Investigating the Role of HR Development Activities on Employee Innovation by Testing the Intermediate Role of Combination and Exchange of Knowledge and Organizational Learning. Innovation and Creativity in the Humanities, 6(3), 151-178, (In Persian).
Rasheed, M., Shahzad, K., Conroy, C., Nadeem, S., & Siddique, M. U. (2017). Exploring the role of employee voice between HPWS and organizational innovation in SMEs. Journal of Small Business and Enterprise Development, 24(4), 670-688.
Rezaei Malek, N., & Radfar, R. (2013). A Model for Prioritizing of Knowledge Sharing & Exchange to Improve CRM Performance. IT Management, 5(2), 63-82, (In Persian).
SeyedJavadin, S., & Rezaei, S. (2015). Impact of HPWS on Knowledge Sharing & Organizational Innovation. Public Management Research, 8(27), 23-44, (In Persian).
Shijaku, E., Larraza-Kintana, M., & Urtasun-Alonso, A. (2015, December). HPWS, technology and flexibility in the Spanish manufacturing industry: The moderating role of social capital. A Global Forum for Empirical Scholarship. 3(3), 279-299.
Van den Hooff, B., & Huysman, M. (2009). Managing knowledge sharing: Emergent and engineering approaches. Information & management, 46(1), 1-8.
Ziaei, M. S., Monavarian, A., & Kazemi, A. (2011). The Relationship between Social Capital & Organizational Readiness for Deployment of Knowledge Combination & Exchange. Government Management, 3(8), 179-198, (In Persian).
_||_Alguezaui, S., & Filieri, R. (2010). Investigating the role of social capital in innovation: sparse versus dense network. Journal of knowledge management, 14(6), 891-909.
Anand, N., Gardner, H. K., & Morris, T. (2007). Knowledge-based innovation: Emergence and embedding of new practice areas in management consulting firms. Academy of Management Journal, 50(2), 406-428.
Ananthram, S., Xerri, M. J., Teo, S. T., & Connell, J. (2018). High-performance work systems and employee outcomes in Indian call centres: a mediation approach. Personnel Review, 47(4), 931-950.
Bameri, N., & Keshtegar, A., & Mehdi Beigi, N. (2018). Impact of eHRM Functions on Organizational Innovation with the Mediating Role of knowledge Combination and Exchange. Public Management Research, 11(41), 139-164, (In Persian).
Besley, T., & Coate, S. (2015). Group lending, repayment incentives and social collateral. Journal of development economics, 46(1), 1-18.
Boroumand Kakhaki, A., & Akhavan, A. (2017). Challenges and Requirements for Development of Knowledge Combination and Exchange at National Petrochemical Company. HRM in the Oil Industry, 9 (35), 187-211, (In Persian).
Boxall, P., Ang, S. H., & Bartram, T. (2011). Analysing the ‘black box’of HRM: Uncovering HR goals, mediators, and outcomes in a standardized service environment. Journal of Management Studies, 48(7),1504-1532.
Cabrera, A., Collins, W. C., & Salgado, J. F. (2006). Determinants of individual engagement in knowledge sharing. The International Journal of Human Resource Management,17(2), 245-264.
Cafferkey, K., & Dundon, T. (2015). Explaining the black box: HPWS and organizational climate. Personnel Review, 44(5), 666-688.
Chang, C. W., Huang, H. C., Chiang, C. Y., Hsu, C. P., & Chang, C. C. (2012). Social capital and knowledge sharing: effects on patient safety. Journal of advanced nursing, 68(8), 1793-1803.
Čiarnienė, R., Vienažindienė, M., & Adamonienė, R. (2018). Implementation of Flexible Work Arrangements for Sustainable Development. Journal of Sustainable Development, 7(4), 11-21.
Collins, C. J., & Smith, K. G. (2006). Knowledge exchange and combination: The role of human resource practices in the performance of high-technology firms. Academy of management journal, 4(3), 544-560.
Davar, S. C., & Parti, M. (2013). Does training affect productivity of employees? Two methods of meta-analysis. Indian Journal of Industrial Relations, 48(4), 651-662.
Dehgani, A., Raghighi Asli, A., & Pourvali, F. (2015). The Effect of In-Service Training on Employee Empowerment and Job Performance in an Insurance Company. Insurance Research, 30(2), 35-60, (In Persian).
Drummond, I., & Stone, I. (2007). Exploring the potential of high performance work system in SMEs. Employee Relations, 29(2), 192-207.
Ebili, Kh., & Zare Khalili, M. (2013). The Relationship between Organizational Social Capital and Knowledge Management in a Public Insurance Company. Insurance Reserches, 28(2), 129-152, (In Persian).
Evans, W. R., & Davis, W. D. (2005). High-performance work systems and organizational performance: The mediating role of internal social structure. Journal of management, 31(5), 758-775.
Feghhi Farahmand, N., and Zanjani, S. (2013), The Examinitaion Of Realationship Between Employees Conceptions From Dimention Of Work Ethic With Job Satisfaction And Job Stress( Case study: Technical Training Organization), Journal Of Sociology Studies, 5(18), 103-118. (In Persian).
Fornell, C. & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research,18(1), 39-50.
Frimpong, J., Helleringer, S., Awoonor‐Williams, J., Yeji, F., & Phillips, J. (2011). Does supervision improve health worker productivity? Evidence from Upper East Region of Ghana. Tropical Medicine & International Health, 16(10),1225-1233.
Fu, N., Ma, Q., Bosak, J., & Flood, P. (2015). Exploring the relationships between HPWS, organizational ambidexterity and firm performance in Chinese professional service firms. Journal of Chinese Human Resource Management, 16(1), 52-70.
Gelderman, C. J., Semeijn, J., & Mertschuweit, P. P. (2016). The impact of social capital and technological uncertainty on strategic performance: The supplier perspective. Journal of Purchasing and Supply Management, 22(3), 225-234.
Ghiasi Nadoushan, S., & Amin al-Raaya, A. (2016). Effect of Social Capital & Intellectual Capital on HR Productivity. Management Studies, 25(80), 183-209, (In Persian).
Gittell, J. H., Seidner, R., & Wimbush, J. (2010). A relational model of how HPWS work. Organization science, 21(2), 490-506.
Greve, A., Benassi, M., & Sti, A. D. (2010). Exploring the contributions of human and social capital to productivity. International Review of Sociology, 20(1), 35-58.
Hosseini Sarkhosh, S. M., & Akhavan, P. (2016). Role of Social Capital in Promoting Knowledge Sharing and Employee Productivity in Knowledge Based Industrial Organizations. Productivity Management, 10(38), 33-61, (In Persian).
Iranzadeh, S and Zanjani, S (2012), The Relationship between Psychological Empowerment and Participatory Management of Female Teachers (Case Study), woman & study of family, 4(14), 65-83. (In Persian).
Iranzadeh, S., Fakhimi Azar, S., & Jedari Sefidgari, A. (2015). Effect of KM Components on HR Productivity Using Factor Analysis Method in Financial and Credit Institutions of Tabriz. Productivity Management, 9(33), 27-45, (In Persian).
Jesarati, A., Babazadeh, H., Zanjani, S., Jesarati, A., Azizi, H., Rezapur, A. (2013), An investigation of the relationship between motivational factors and performance of education staff, European Journal of Experimental Biology, 3(3), 681-686.
Jiang, J. Y., & Liu, C. W. (2015). High performance work systems and organizational effectiveness: The mediating role of social capital. Human Resource Management Review, 25(1), 126-137.
Jyoti, J., & Rani, A. (2017). Hpws and organisational performance: Role of knowledge management. Personnel Review, 46(8), 1770-1795.
Kamali, Y. (2014). The Role of Decentralization in The Realization of Administrative Health. Strategic & Macroeconomic Policies Quarterly, 2(5), 111-132, (In Persian).
Kengatharan, N. (2019). A knowledge-based theory of the firm: Nexus of intellectual capital, productivity and firms’ performance. International Journal of Manpower.
Khezrpour, Kh., Maziari, M., & Sabounchi, R. (2014). Relationship between Social Capital and Productivity of Sport and Youth Offices of West Azerbaijan Province. Human Resource Management in Sport, 1(2), 147-156, (In Persian).
Lanfredi, M., Zoppei, S., Ferrari, C., Bonetto, C., Van Bortel, T., Thornicroft, G., ... & ASPEN Study group. (2015). Self-stigma as a mediator between social capital and empowerment among people with major depressive disorder in Europe: The ASPEN study. European Psychiatry, 30(1), 58-64.
Mathew, J., Ogbonna, E., & Harris, L. C. (2012). Culture, employee work outcomes and performance: An empirical analysis of Indian software firms. Journal of World Business, 47(2), 194-203.
Michaelis, B., Wagner, J. D., & Schweizer, L. (2015). Knowledge as a key in the relationship between high-performance work systems and workforce productivity. Journal of Business Research, 68(5), 1035-1044.
Mihail, D., & Kloutsiniotis, P. (2016). The effects of high-performance work systems on hospital employees' work-related well-being: Evidence from Greece. European Management Journal, 34(4), 424-438.
Mohammadi, R., Honari, H., & Keshkar, S. (2014). Relationship between Subsystems of Knowledge Combination & Exchange in Learning Organization & HR Productivity in Selected Sports Federations. Sport Management, 6(1), 57-74, (In Persian).
Mohebifar, R., Khodabakhshian, M., & Rafiei, S. (2016). The effect of organizational reward on staff performance with the mediating role of motivation in teaching hospitals of Qazvin. Health-Focused Research, 1(1), 223-232, (In Persian).
Monks, K., Kelly, G., Conway, E., Flood, P., Truss, K., & Hannon, E. (2013). Understanding how HR systems work: the role of HR philosophy & HR processes. Human resource management journal, 23(4), 379-395.
Nahapiet, J., & Ghoshal, S. (1998). Social capital, intellectual capital, and the organizational advantage. Academy of management review, 23(2), 242-266.
Patel, P. C., & Conklin, B. (2012). Perceived labor productivity in small firms—the effects of HPWS and group culture through employee retention. Entrepreneurship Theory and Practice, 36(2), 205-235.
Patel, P., Messersmith, J., & Lepak, D. (2013). Walking the Tightrope: An Assessment of the Relationship between HPWS and Organizational Ambidexterity. Academy of Management Journal, 56(5), 1420–1442.
Piran, M., Agajani, T., Shoghi, B., Rezazadeh, A., & Dehghan Najmabadi, A. (2012). The Effect of Social Capital on Employee Creativity in Iranian Casting Industries. Innovation and Creativity in Humanities, 2(1), 163-182, (In Persian).
Portes, A., & Sensenbrenner, J. (2015). Embeddedness & immigration: Notes on the social determinants of economic action. American journal of sociology, 98(6), 1320-1350.
Rahman Seresht, H., & Jabbarzadeh Karbasi, B. (2017). The Effect of HRM Measures on Dimensions of Social Capital and Strategic Performance of SMEs. Transformation Management Research, 9(18), 1-23, (In Persian).
Rajabi Farjad, H. (2016). Investigating the mediating role of KM in relationship between HRM and innovation. HRM Research, 8(3), 239-265, (In Persian).
Rajabi, M., Hassani, M., & Mohajerani, B. (2016). Investigating the Role of HR Development Activities on Employee Innovation by Testing the Intermediate Role of Combination and Exchange of Knowledge and Organizational Learning. Innovation and Creativity in the Humanities, 6(3), 151-178, (In Persian).
Rasheed, M., Shahzad, K., Conroy, C., Nadeem, S., & Siddique, M. U. (2017). Exploring the role of employee voice between HPWS and organizational innovation in SMEs. Journal of Small Business and Enterprise Development, 24(4), 670-688.
Rezaei Malek, N., & Radfar, R. (2013). A Model for Prioritizing of Knowledge Sharing & Exchange to Improve CRM Performance. IT Management, 5(2), 63-82, (In Persian).
SeyedJavadin, S., & Rezaei, S. (2015). Impact of HPWS on Knowledge Sharing & Organizational Innovation. Public Management Research, 8(27), 23-44, (In Persian).
Shijaku, E., Larraza-Kintana, M., & Urtasun-Alonso, A. (2015, December). HPWS, technology and flexibility in the Spanish manufacturing industry: The moderating role of social capital. A Global Forum for Empirical Scholarship. 3(3), 279-299.
Van den Hooff, B., & Huysman, M. (2009). Managing knowledge sharing: Emergent and engineering approaches. Information & management, 46(1), 1-8.
Ziaei, M. S., Monavarian, A., & Kazemi, A. (2011). The Relationship between Social Capital & Organizational Readiness for Deployment of Knowledge Combination & Exchange. Government Management, 3(8), 179-198, (In Persian).
