High-Performance Work Practices and Organizational Innovativeness: The Roles of Relational Coordination Competencies and Market Turbulence as a Mediator or Moderator

Abstract

Despite an enduring interest in the effect of high-performance work practices (HPWP) on organizational outcomes, relatively little is known about how the human resources practices that engage employees in a coordinated effort foster relational coordination competencies, and further enhance organizational innovativeness. Drawing on the relational model of HPWP, this study examined the impact of HPWP on organizational innovativeness through employees’ relational coordination competencies, and the moderating effect of environmental volatility on the relationship. Using two-wave panel data from 301 manufacturing companies in South Korea, the results showed that HPWP positively influenced organizational innovativeness, as measured by the number of patent applications with a 6-year time lag, and that the link was partially mediated by employees’ relational coordination competencies. The positive effect of HPWP on organizational innovativeness was more pronounced when market turbulence was high. This study adds value to the HPWP literature by revealing the importance of human resource practices that develop employees’ relational coordination and communication competencies in achieving organizational innovativeness. Such practices are becoming even more crucial in today’s complex business environment, which necessitates task integration and employee cooperation.

Keywords

• high-performance work practices
• relational coordination
• innovativeness
• market turbulence