Strategic human resource management and employees' intention to leave: testing the moderated mediation

Abstract

PurposeThe purpose of this study is to examine the relationship between business strategies (i.e. cost reduction, quality enhancement and innovation strategy) and employees' intention to leave (ITL), through the mediating role of high-performance work system (HPWS). It also attempts to study variability in the relationship between business strategies, HPWS and employees' ITL on the basis of nature and ownership forms of the firms.Design/methodology/approachPrimary data based on 573 respondents from 192 organizations operating in India were analysed using structural equation modelling and conditional process modelling.FindingsThis study has revealed that HPWS mediates the relationship between business strategy (specifically innovation and quality-enhancement strategy) and employees' ITL. Findings further indicate that the mediated relationships between quality enhancement and innovation strategy, HPWS and ITL do not vary across nature and ownership forms of the firms.Practical implicationsIn context of dynamic business environments in developing countries, the findings provide some important insights in exploring the relevance of strategic human resource management in improving employees' behavioural intentions.Originality/valueBy applying a three dimensional business strategy system (innovation, quality and cost) and by exploring the relevance of several contextual factors, this study attempts to expand the focus of turnover research.