The influence of perceived high-performance work systems on innovative work behavior: Mediating role of work engagement

BackgroundThe principle of HRM requires employees to come up with novelty and creative ideas in work organizations. Prior research viewed high-performance work systems (HPWS) as an essential factor that promotes innovation and performance outcomes as it encourages employee creativity, risk-taking, and experimentation.ObjectiveThe current study investigated the influence of HPWS on innovative work behavior in medium-sized manufacturing enterprises through work engagement. Although much has been done to analyze various outcomes of high-performance work systems in large-scale manufacturing industries, little is known about its implementation amongst medium-sized manufacturing enterprises in Malaysia.MethodsThis study employed a group of 170 middle-management employees from medium-sized manufacturing businesses in Klang Valley, Malaysia. To perform the analysis, the researchers used SmartPLS 3.0 software. The list of medium-sized enterprises in the Klang Valley area was obtained from SME Corporation Malaysia. G*Power version 3.1.9.2 statistical program was used to perform power analysis in determining the minimum sample size for this study. The theory of job demands-resources (JD-R) model underpins the linkages between HPWS and IWB of employees in medium-sized manufacturing enterprises.ResultsThe outcome indicated a noteworthy relationship between innovative work behavior and selective staffing, mentoring, and employee participation. Additionally, the study demonstrated that work engagement is crucial in promoting innovative work behavior with a medium effect size. Moreover, the connection between selective staffing, mentoring, and employee participation is mediated by work engagement.ConclusionsThis research expands the existing information on ways to implement HPWS in medium-sized manufacturing companies. Moreover, it offers practical guidance to decision-makers, especially in promoting innovation among staff through effective high-performance work practices.