This paper extends the institution theory to examine the relationship between high-performance work system (HPWS) and organizational performance (OP), and analyzes how country of origin interacts with performance measures and industrial affiliation in moderating the HPWS–OP relationship.
The paper collects data of 60,142 firms and establishments in 252 studies published up to December 2021 and employs meta-analysis techniques to test hypotheses on the role of country of origin in moderating the HPWS–OP relationship in conjunction with performance measures and industrial affiliation.
The paper finds that, firstly, there is a positive relationship between HPWS and OP, but the relationship is much stronger in developing than advanced countries. Secondly, the relationship is stronger when OP is measured in operational than financial term in both developing and advanced countries, but the moderating effect of performance measures is stronger in developing than advanced countries. Thirdly, the relationship is stronger in service than manufacturing industries in developing countries, but no such variation is found in advanced countries.
The study for the first time unveils the important role of country of origin in interacting with performance measures and industry affiliation to condition the HPWS–OP relationship, and provides a coherent explanation based on institutional theory. The study sheds fresh light on the HPWS–OP relationship, and has important implications for managers.
