An empirical examination of the relationship between skills shortage and firm performance: The role of high-performance work systems. (September 2019)

• Record Type: Journal Article
• Authors: Malik, Amina R.; Manroop, Laxmikant; Patel, Pankaj C.
• Is Part Of: Journal of management & organization. Volume 25:Number 5(2019)
• Page Start: 695
• Page End: 710
• Publication Date: 2019-09
• Subjects: human resource management, -- high-performance work systems, -- skill shortages, -- firm performance; Management -- Periodicals; 658.005
• DOI: 10.1017/jmo.2017.30
• Languages: English
• ISSNs: 1833-3672

Abstract

Abstract: There has been growing scholarly interest in the relationship between high-performance work systems and firm performance. Yet, limited research attention has been given to the impact of high-performance work systems on firm performance during skills shortages. In this study, we empirically examine the influence of high-performance work systems on firm performance in the midst of skills shortages. Results from a study of 211 US firms with 50 or more employees demonstrate that internal skills shortages are not related to firm profitability. Findings further show that the use of high-performance work systems is more detrimental to firm performance for firms when they face an internal skills shortage. These results are discussed and future research directions are offered.