How to make a sustainable manufacturing process: A high-commitment HRM system

Abstract

The primary purpose of this study is to investigate the relationship between highcommitment human resource management (HCHRM) practices and process improvement activities (i.e., manufacturing flexibility) by utilizing the theory of social exchange. We conducted an empirical study to discover the links between social exchange theory and process management from an HRM perspective. For the empirical investigation, we used data from 601 manufacturing enterprises provided by the Ministry of Trade, Industry, and Energy in South Korea. The research is conducted based on employees' capabilities for process management as a mediator in the analysis of the impact of the HCHRM system on manufacturing flexibility (i.e., internally-driven and externally-driven flexibility). The results of the study show that the HCHRM system ultimately explains manufacturing flexibility through enhancement of employees' capabilities.