This study addresses three research questions: (1) do high-performance work systems (HPWS) enhance organizational performance by reducing collective turnover? (2) does a collectivist organizational culture moderate the link between collective turnover and organizational performance? (3) does collectivist organizational culture act as a boundary condition for the mediating effects of collective turnover in the link between HPWS and organizational performance?
A conditional process model linking HPWS, collective turnover, collectivist culture and organizational performance was developed and examined with longitudinal data collected at three different time points from 350 firms in South Korea.
The positive indirect effects of HPWS on organizational performance through collective turnover were significant. Regarding collectivist culture as a moderator, the negative relationship between collective turnover and organizational performance was stronger when the collectivist culture in the organization is high. In addition, the positive indirect effects of HPWS on organizational performance through collective turnover were also stronger when the collectivist culture in the organization is high.
This study provides a significant contribution to the areas of HPWS by reshaping the conceptual mechanisms in which HPWS enhance organizational performance. Further, it explores the significant role of collectivist culture as a moderator in the relationship between HPWS, collective turnover and organizational performance.
