RECONNOITERING THE INTERVENING ROLE OF DYNAMIC CAPABILITIES BETWEEN HIGH-PERFORMANCE WORK SYSTEMS AND INNOVATION PERFORMANCE

Abstract

Purpose of the study: This study explores the Impact of High-Performance Work System practices (HPWS), on innovation performance, through the intervening role of dynamic capabilities and innovation culture among the rapidly growing cement industry of Pakistan, which is the backbone of Pakistan's construction industry. Methodology: This is a self-administrative survey, and data were analyzed using Smart PLS 3.0, SPSS. Main Findings: HPWS has a positive impact on a firm's innovation performance. Furthermore, dynamic capabilities mediated the association between HPWS and innovation performance. Applications of this study: The study is essential for the cement industry, where traditional HRM has long been applied. Using HPWS would create a more innovative environment and establish dynamic capabilities that can trigger innovations such as administrative, incremental, radical, and marketing in the face of dynamic customer demands. Novelty/Originality of this study: This study has enriched our understanding of how organizations can improve their innovation performance in a complex and ambiguous environment, which is crucial to gaining competitive advantages. This study also suggests that developing a system of HPWS practices in organizations, particularly the cement industry, will help the organizations flourish and stay competitive in the marketplace and help elicit the right employee attitudes by fully mediating dynamic capabilities. Therefore, organizations should establish developed HPWS and create an innovation culture that will ultimately benefit the organization creates an innovation culture.