The role of high-performance work system and human capital in enhancing job performance

Purpose – The aim of the current research is to examine how job performance is affected by high-performance work system (HPWS) and human capital. Furthermore, the research focuses on exploring the mediating role played by human capital in HPWS and job performance relationship.
Design/methodology/approach – Data was collected from service sector employees. A sample of 400 respondents was selected from the chosen population using purposive sampling.
Findings – The results reveal that HPWS and human capital positively and significantly affect job performance. The impact of HPWS in creating human capital was also supported. The research also hypothesized mediating role played by human capital in HPWS and job performance relationship, and it was partially supported.
Originality/value – Recent literature is evident of the relationship between performance and HPWS; however, the mechanism between these variables is still unclear (Demirbag et al., 2014). There is a need of identifying the factors that strengthen this relationship. The current research is an attempt to fill this gap by examining the effect of HPWS on job performance. Furthermore, it explores the role played by human capital in strengthening the connection of HPWS and job performance.