The study advances research on the high-performance work system (HPWS) and innovation performance (IP) linkage by empirically analyzing the serial mediation of human resource flexibility (HRF) and knowledge absorptive capacity (KAC). Previous research on the HPWS–IP linkage underscores the presence of a “black box.” Therefore, the present study aims to unravel the underexplored HPWS–IP relationship through HRF and KAC mediation in the context of the hotel industry.
Survey-based time-lagged data were collected from 303 mid-level managers in the hotel industry. Structural equation modeling (SEM) using Smart-PLS 4 was used to test hypothesized relationships.
The results reveal that HPWS has a significant positive direct relationship with innovation performance, human resource flexibility and knowledge absorptive capacity. Further, both human resource flexibility and knowledge absorptive capacity also serially mediate the HPWS–IP linkage.
The results of the study provide useful insights into the hotel industry in Pakistan by offering empirical evidence that building HPWS in the hotel sector can lead to increased human resource flexibility and enhanced knowledge absorptive capacity, ultimately contributing to improved innovation performance.
Notably, human resource flexibility and knowledge absorptive capacity together as dynamic capabilities represent a novel contribution rarely discussed in the literature, particularly their role as serial mediators between HPWS–IP relationships within the hotel industry.
