The influence of perceived high-performance work systems on innovative work behavior through work engagement

The present study examined the influence of high-performance work systems (HPWS) on innovative work behavior through work engagement in medium-sized manufacturing enterprises. Although much has been done to investigate various outcomes of innovative work behavior, little is known about HPWS implementation amongst medium-sized manufacturing enterprises and more concentrated on large manufacturing enterprises in Malaysia. Also, empirical study about HPWS practice towards innovative work behavior is very limited. According to job demands-resources theory, organizational resources can be explained through seven dimensions of HPWS and its effect on innovative work behavior and how work engagement intervenes in the relationship. Applying the job demands-resources theory, the study attempts to investigate the dominant predictor of HPWS in medium-sized enterprises and identify the effect of HPWS practices towards innovative work behavior and work engagement. Further, the influences of HPWS on innovative work behavior through the support of work engagement as a mediator were also investigated. Using a sample of 170 middle management staff in medium-sized manufacturing enterprises in Klang Valley, Malaysia, this study tested the causal pathway between HPWS dimensions, namely selective staffing, extensive training, mentoring, job security, employee participation, performance appraisal and compensation for innovative work behavior and the possible influence of mediating effect of work engagement. Statistical Package for the Social Sciences (SPSS) and Smart Partial Least Square (PLS) softwares were used to conduct the analysis. Among the tested hypotheses, eight were accepted. The results showed that selective staffing was the dominant predictor of HPWS towards innovative work behavior in Malaysian medium-sized enterprises. It was also found that selective staffing, mentoring, and employee participation significantly related to innovative work behavior. The findings also showed that work engagement has a significant effect on innovative work behavior with a medium effect size. Furthermore, work engagement mediates the relationship between selective staffing, mentoring, and employee participation. The findings of this study add to the body of knowledge related to HPWS implementation, particularly in medium-sized manufacturing enterprises. In addition, it contributes to practice by giving the management, especially those involved in the decision making process related to innovativeness, some insight on HPWS practices that should be applied in enhancing innovative behavior for their employees