This study aims to investigate the effect of high-performance work systems (HPWS) on organizational performance (OP) through organizational culture (OC) and workforce agility (WA) as mediating factors.
Data were collected from 170 Indonesian state-owned bank branch offices. The model test analysis was carried out with partial least squares (PLS) through a two-stage disjoint approach using SmartPLS 4.
Results indicated that OC and WA play a fully mediating role in the influence of HPWS on OP. This study contributes to the existing literature by exploring and predicting the effect of HPWS and the dual mediating role of WA and OC on OP in an integrated framework. The findings of this study also show the insignificance of the direct influence of HPWS on organizational performance in the banking context.
This study highlights the strategic role of HPWS in enhancing OC and WA, positioning human resources as a key driver of organizational capability rather than an administrative function. Managers should strengthen cultural values such as integrity, accountability, customer focus and innovation through structured practices to improve branch performance. Furthermore, workforce agility is confirmed as a critical performance driver, suggesting the need for continuous learning, job rotation, empowerment and flexible work arrangements to foster adaptive employee behavior and sustain performance improvement.
This study contributes to the limited empirical research on strategic management in banking institutions by disentangling HPWS strategies and elucidating the mediating role of WA and OC. Beyond the Indonesian state-owned bank context, the findings provide actionable insights for banks and service organizations in similar highly regulated and rapidly changing environments seeking to leverage strategic HR practices for optimizing performance growth.
