Shared high-performance work system perceptions as a competitive advantage: mediating role of trust in management in the HPWS-performance link

Abstract

Purpose This study aims to investigate the mediating role of trust in management and the moderating role of employee-management congruence in high-performance work system (HPWS) perceptions on the relationship between HPWS and firm performance. Design/methodology/approach Survey data on HPWS practices and employee–manager perceptions from a large sample of South Korean firms were integrated with objective financial performance data. Path analysis using STATA 18.0 with robust standard errors was used to test the hypothesised moderated mediation model. Findings Trust in management partially mediated the relationship between HPWS and firm performance. While employee–management congruence in HPWS perceptions did not moderate the direct effect of HPWS on firm performance, it significantly moderated the indirect effect through trust in management. The positive influence of HPWS on performance via trust was stronger when employee–management congruence was high. Originality/value This study extends the social exchange perspective on the HPWS–performance relationship by incorporating trust in management as a critical mediator and employee–management congruence in HPWS perceptions as a moderator. The findings highlight the importance of fostering shared understandings of human resource practices between employees and managers to optimise the trust-building and performance-enhancing effects of HPWS.