Exploration of the impact of institutional factors on actors in the implementation of effective high performance work system

Abstract

The current volume of research in the field of High Performance Work Systems (HPWS) is focused on identifying the factors, which influence their effectiveness. The realisation that there is a need to move forwards from the structural aspects of HPWS towards understanding their implementation has led to two new sectors of research. The first sector is investigating the role of actors in implementation using aspects such as cross functionality, shared responsibility and interaction. Another sector is investigating the impact of contextual factors on the implementation of HPWS. This research has combined the two sectors and looks at the implementation of HPWS from the perspectives of both the actors and the environment. This research investigates how the interaction between actors affects the implementation of HPWS. Also how internal and external institutional factors affect this interaction as well as the implementation. This research is qualitatively based on an interpretivist paradigm. Case study research design was used to conduct the research. Two Saudi Arabian banks were selected as case studies. Data was collected using 54 semi-structured interviews and 61 focus group interviews. Data about implementation and the impact of institutional factors was obtained through semi-structured interviews with human resource managers, line managers and senior managers. Data about employee outcomes was obtained using focus group interviews with the employees. This research finds evidence of conflict between the intended and actual outcomes of HPWS in the Saudi banking sector due to institutional pressures. This research contributes and extends the growing body of research on HPWS implementation by including the interaction of actors and accounting for institutional pressures. The finding highlights that the combination of these two factors are contextual institutional conductors and contribute to diversity in the implementation of HPWS practices. The managerial benefit of this research is that its model can help practitioners to improve their social interaction conditions for better performance.