Work dynamics in retail industry: Impact of work intensification, high-performance work systems, and emotional exhaustion

The retail industry has complex and demanding work dynamics. In this context, a deep understanding of the factors that influence employee performance is highly relevant to managing retail companies. This study examines the interrelationships among work intensification, high-performance work systems (HPWS), emotional exhaustion, employee creativity, and employee performance within the retail industry. This study used a survey approach with a quantitative methodology; data were gathered through questionnaire distribution to 235 retail employees across Jakarta, Indonesia, utilizing non-probability convenience sampling. Analysis was conducted using partial least squares-structural equation modeling (PLS-SEM) via the SmartPLS version 3.3.3 tool. Results revealed that work intensification significantly and positively influences HPWS and emotional exhaustion (p < 0.05). While HPWS exhibited no significant impact on employee creativity, emotional exhaustion had a significant and negative effect (p > 0.05). Furthermore, employee creativity demonstrated a significant positive effect on employee performance (p < 0.05). It was a significant mediator between emotional exhaustion and employee performance, though not between HPWS and employee performance (p < 0.05). The study underscores the intricate dynamics within the retail work environment, highlighting the intertwined roles of HPWS, emotional exhaustion, and employee creativity. Practical implications emphasize the necessity for effective management strategies to navigate work intensification and emotional exhaustion, ultimately enhancing employee performance. Notably, this paper offers a comprehensive analysis of factors shaping employee performance in the retail sector, emphasizing the pivotal significance of HPWS, emotional exhaustion, and employee creativity as interconnected components.