Human resources flexibility as a mediating mechanism between high-performance work systems and organizational performance: a multilevel quasi-longitudinal study

Purpose The purpose of this study is to investigate the impact of high-performance work systems (HPWS) on organizational performance through the mediating role of human resources (HR) flexibility (expressed by functional flexibility, skills malleability and behavioural flexibility). Design/methodology/approach The study examines theoretical relationships in the Greek context, which reflects changing economic and financial crisis, based on multilevel structural equation modelling estimation, using three waves of sample data collected in years 2014, 2016 and 2018 from organizations operating in the private sector. Findings The study finds that although HPWS positively influences all three HR flexibility dimensions, this positive effect is not transferred equally to organizational performance. The dominant effect on organizational performance is attributed to skills malleability, a smaller effect to behavioural flexibility and a negligible effect to functional flexibility. Research limitations/implications Although the data collected refer to three different years, most of the companies and individuals responded to sampling were different. As such, the study does not allow for dynamic causal inferences due to its quasi-longitudinal nature. Practical implications The findings of this study may influence managerial decisions in developing bundles of HPWS policies and practices in relation to HR flexibility attributes. Originality/value Since most studies consider HR flexibility as an aggregated construct, this study is possibly one of the very few studies that is examining the differential impact of the HR flexibility dimensions on organizational performance in turbulent times.