Do performance measures matter in the relationship between high-performance work system and organizational performance?

Purpose The purpose of this paper is to develop a resource-based framework to explain the relationship between high-performance work system (HPWS) and organizational performance (OP) and the moderating role of performance measures. Design/methodology/approach The paper takes a meta-analysis approach, and tests hypotheses against data of 47,741 firms and establishments in 192 studies published by June 2016. Findings The paper finds that HPWS has a greater positive effect on operational than financial performance. Moreover, HPWS influences operational performance more strongly in developing than advanced countries and at the firm level than the establishment level, but such variations are not evident in the effect of HPWS on financial performance. Originality/value Based on studies of individual HRM practices, previous meta-analytical studies suggested that the HPWS-OP relationship is invariant across performance measures. Taking HRM practices as integral components of HPWS, this paper extends the resource-based theory to demonstrate that performance measures interact with country of origin and level of analysis to moderate the HPWS-OP relationship.