The effect of high involvement work systems on organizational performance: the mediating role of knowledge-based capital

Abstract

This study investigate the effects of high involvement human resources on organizational performance. The study is accomplished through hypothesizing the effect of high involvement work systems on performance as the main relationship. This effect is theorized to be mediated through knowledge-based capital. Additionally, leadership style is considered as the potential moderating force in the theorized model. Data is analyzed from 380 collected questionnaires distributed among hotel employees in Jordan using structural equation modelling techniques. The results show that high involvement work systems had a positive effect on performance, social and human capital. Human and social capital mediating role is also observed. Finally, leadership style is emerged as a moderating variable affecting the relationship between high involvement work systems and performance. The findings of this study show the importance of the role played by human and knowledge-based capital in achieving human resources performance goals.