The role of information technology (IT) performance in the relationship between high-performance work systems and competitive advantage

Abstract

Human resources that are of high quality create a competitive advantage for companies, thus Human Resource Management (HRM) and High-Performance Work Systems (HPWS) that are good become key success factors that need to be considered by every company. This study aims to investigate the influence of Human Resource Management (HRM) and High-Performance Work Systems (HPWS) on Information Technology (IT) Performance and Competitive Advantage of a company. The method used in this study is a quantitative approach with a questionnaire as the data collection method. The research sample consisted of 191 supervisors, managers, and executives of manufacturing companies located in Medan, Indonesia. Data analysis was conducted using SmartPLS 4.0 software. The results showed that Human Resource Management significantly affects IT Performance but does not directly affect Competitive Advantage. Meanwhile, HPWS Capability does not affect IT Performance but significantly affects Competitive Advantage. IT Performance significantly affects Competitive Advantage. IT Performance also mediates the relationship between Human Resource Management and Competitive Advantage. However, it is not significant in mediating the relationship between HPWS Capability and Competitive Advantage. These findings underscore that Human Resource Management (HRM) and High-Performance Work Systems (HPWS) play pivotal roles in shaping Information Technology (IT) performance and competitive advantage within companies, thus impacting the overall success and sustainability of companies.