Do high performance work systems enhance business performance? Examining the mediating influence of total quality management

Abstract

This paper analyses the effect of High-Performance Work Systems (HPWS) and Total Quality Management (TQM) on business performance. An extensive literature review made it possible to establish four hypotheses, along with a comprehensive path model of relationships tested by means of structural equation modelling (SEM) using the partial least squares (PLS) technique. The results show that HPWS positively influence business performance and TQM which, in return, directly improves business performance and mediates in the HPWS-business performance relationship. Upon considering these conclusions, we can, therefore, state that the integration of both human resource management and total quality management is a key strategy for a company.

Keywords

• high performance work systems
• total quality management
• mediation
• business performance
• partial least square