Impact of high-performance work systems on individual- and branch-level performance: test of a multilevel model of intermediate linkages

Samuel Aryee*, F.O. Walumbwa, E.Y.M. Seidu, L.E. Otaye

*Corresponding author for this work

Research output: Contribution to journalArticle

Abstract

We proposed and tested a multilevel model, underpinned by empowerment theory, that examines the processes linking high-performance work systems (HPWS) and performance outcomes at the individual and organizational levels of analyses. Data were obtained from 37 branches of 2 banking institutions in Ghana. Results of hierarchical regression analysis revealed that branch-level HPWS relates to empowerment climate. Additionally, results of hierarchical linear modeling that examined the hypothesized cross-level relationships revealed 3 salient findings. First, experienced HPWS and empowerment climate partially mediate the influence of branch-level HPWS on psychological empowerment. Second, psychological empowerment partially mediates the influence of empowerment climate and experienced HPWS on service performance. Third, service orientation moderates the psychological empowerment-service performance relationship such that the relationship is stronger for those high rather than low in service orientation. Last, ordinary least squares regression results revealed that branch-level HPWS influences branch-level market performance through cross-level and individual-level influences on service performance that emerges at the branch level as aggregated service performance. © 2011 American Psychological Association.

Original languageEnglish
Pages (from-to)287-300
Number of pages14
JournalJournal of Applied Psychology
Volume97
Issue number2
DOIs
Publication statusPublished - Mar 2012

Keywords

  • empowerment climate
  • high-performance work systems
  • psychological empowerment
  • service performance
  • serviceorientation

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