HIGH PERFORMANCE WORK SYSTEMS: A CAUSAL FRAMEWORK OF TRAINING, INNOVATION, AND ORGANIZATIONAL PERFORMANCE IN CANADA

Abstract

<p>The processes that link High Performance Work System (HPWS) practices and organizational performance are not fully understood. Using resource-based theory, this research focuses on training, by separating it from other HPWS practices, and human capital development as a source of sustained competitive advantage. The first purpose of my research is to examine the relationships between the HPWS practice of training, innovation, and organizational performance, and look at the mediating effect of innovation over time at the workplace level. The results indicate that the temporal pathway from training to innovation to organizational performance is positive and significant even after controlling for reverse-causality. Strategic activity is also explored and is found to be a significant moderator. This study contributes to knowledge by identifying the importance of aligning business strategy with training, as well as other HPWS practices and innovation to achieve improved organizational performance outcomes. The second purpose of this research is to explore the factors that act to expand or limit the HPWS practice of training, with a focus on the outcomes of employers' decisions to offer training, employees' decisions to accept or decline training, and the job-related training received by employees. The results indicate that the employee-level factors: participating in HPWS practices, use of technology, and using new technology are significant contributors to employers' decisions to offer and employees' receipt of training. Further, employees' perception of the existence of a gap between the skills required for the job and their current skills contributes to employees accepting employer offers of training.</p>