Impact of High-performance Work Systems on Employee Performance in Knowledge-based Service Organizations: A Moderated Mediation Model

The study examined the relationship between high-performance work systems (HPWS) and employee performance (EP) via employee engagement (EE) as a mediator and perceived organizational support (POS) as a moderator in knowledge-based service organizations (KBSOs). The data were collected from 340 employees from the service sector adopting knowledge-intensive tools and techniques, systems and processes. We analyzed data using structural equation modelling to test the proposed model and examine the relationships among the variables. The findings indicate that the HPWS has significantly and positively impacted EP. EE significantly mediated the relationship, and POS significantly moderated the relationship between HPWS and EP. The results suggest that EE predominantly improves EP, where organizational support has significantly strengthened this relationship. The study contributes to the literature by testing a comprehensive model in KBSOs and supports the resource-based view (RBV), ability–motivation–opportunity (AMO) and organizational support theory (OST). It has practical implications for the management of the service sector to adopt HPWS by valuing their contributions and taking care of their well-being through support and investment in human resources (HR), resulting in better engagement, motivation and commitment to enhance EP.