Effect of HPWS on Organizational Performance with Mediating Role of Knowledge Management

Abstract

This study aimed to explore the impact of high-performance work systems on organizational performance, focusing on the mediating role of knowledge management practices within the telecom sector companies of Balochistan, Pakistan. The study objectives included examining the relationship between high-performance work systems (HPWS) and organizational performance (OP), assessing the relationship between HPWS and knowledge management practices (KMPs), evaluating the relationship between KMPs and OP, and, exploring the mediating role of KMPs between HPWS and OP. The research study examined three main constructs such as HPWS, KMPs, and OP, and contributed to the main body of knowledge by exploring the mediating role of knowledge management practices. The main findings of the study proved that financial performance, employee performance, and operational performance of telecom companies improved due to introduction of HPWS, and the companies achieved competitive advantage in performance over rivals due to mediating role played by KMPs within the telecom sector companies in Balochistan. Hence, the study established significant impact of HPWS on OP. The implementation of knowledge management practices through provision of professional knowledge and information to organizational employees and managers, further, boosted the impact of HPWS on OP. The researcher collected primary data from 384 employees including senior, middle, and operational level managers from Ufone, Mobilink, Zong, and Telenor companies in Balochistan, through an adapted questionnaire using quantitative research technique (i.e., survey method). The researcher obtained results applying statistical analytical techniques such as EFA, CFA, AMOS, RMSEA and multiple indices; TLI, IFI, and, CFI. The researcher performed regression, mediation, and correlation methods for analyses. The study found that HPWS exerted significant positive impact on KMPs and OP. It further found that knowledge management practices played significant mediating role in boosting that impact. Practical implications of the study comprise managerial implications of skill upgradation, competence development, engagement in decision making, career management, knowledge creation, knowledge exchange, and knowledge application of organizational employees that lead to improvement in organizational and employee performance. Future study will incorporate other sectors, more dimensions, and more companies within broader research context. Discussions, and conclusion form the final part of the research study.