Unveiling the nexus: exploring the collective social exchange dynamics of high-performance work systems in shaping organizational outcomes

Purpose This study aims to explore the nuanced role of organizational “collectives” in transmitting the effect of high-performance work systems (HPWS) on organizations’ market success and workforce retention. Design/methodology/approach The multi-source data was collected from 113 construction firms operating in Pakistan using a survey questionnaire. Findings The findings indicate that collective human capital and collective satisfaction of organizations differentially mediate the effect of HPWS on market success and workforce retention. Collective satisfaction mediates the effect of HPWS on both market success and workforce retention, however collective human capital only mediates this relationship for market success of organizations. Practical implications Organizations should consider prioritizing investment in cognitive and affective development of overall human resources. Knowledge, skills, abilities and emotions of individual employees operate at the collective level so organizations should design HRM practices to manage collective thoughts and interpretations. Originality/value This is the first study to investigate human capital and satisfaction at the collective organization level to explore collective developmental and motivational paths for HPWS to boost organization strategic outcomes.