Relationship between high performance work systems and task performance, analysis of mediators and moderators

VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM – JAPAN UNIVERSITY CAO GIA KHOA RELATIONSHIP BETWEEN HIGHPERFORMANCE WORK SYSTEMS AND TASK PERFORMANCE, ANALYSIS OF MEDIATORS AND MODERATORS MASTER'S THESIS VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM – JAPAN UNIVERSITY CAO GIA KHOA RELATIONSHIP BETWEEN HIGHPERFORMANCE WORK SYSTEMS AND TASK PERFORMANCE, ANALYSIS OF MEDIATORS AND MODERATORS MAJOR: BUSINESS ADMINISTRATION CODE: 8340101.01 RESEARCH SUPERVISORS: PROF MOTONARI TANABU DR TRAN HUY PHUONG Hanoi, 2022 COMMITMENT I assure that the thesis title "Relationship Between High-Performance Work Systems and Task Performance, Analysis of Mediators and Moderators" is my personal research under the supervision of Prof Motonari Tanabu and Dr Tran Huy Phuong The data used in the thesis is truthful, and the quantitative analysis and conclusions of the thesis were not public in any other research The source of citation for this thesis is fully stated I pledge with personal honor that this research result is my own and does not violate the Regulation on prevention of plagiarism in academic and scientific research activities at VNU Vietnam Japan University (Issued together with Decision No 700/QD-ĐHVN dated 30/9/2021 by the Rector of Vietnam Japan University) I am able and willing to take responsibility for my thesis Hanoi, Jul 2022 Author Cao Gia Khoa ACKNOWLEDGMENT For two years studying at Vietnam Japan University, I had chance to gain much knowledge that I have not known before I am very happy to write my thesis with my favorite topic – human resource From the bottom of my heart, I would like to say big thank to all professors and doctors at Vietnam Japan University and Yokohama National University for teaching me valuable subjects that I applied on the research, and I also believe this knowledge I not only use for my thesis but also, I can use in my career Firstly, I would like to express my sincere gratitude to Professor Motonari Tanabu and Dr Tran Huy Phuong, for their consistent support and guidance during the time Without their prompt and patience, I would not have been able to fulfill the thesis Secondly, I would like to say a special thank you to Prof Yoshiki Matsui, Prof Hisashi Kuruta and Prof Sadami Suzuki for their comments and advice to improve my thesis in weekly seminar Finally, I would like to express my sincere gratitude to MBA program assistant Ms Huong, my classmates who are always supported and encouraged me finish the thesis I would like to thank all people who helped me to the surveys, that I make me to fulfill the research step by step ABSTRACT The study investigated the relationship among human resource systems, individual employee characteristics and the outcomes Human resource system plays a role as an important factor in the company, so improving a human resource system would help increase the performance of employees, and then the performance of company in general To this, the author set high performance work systems (HPWSs) as the independent variable, employee performance as the dependent variable Besides that, employee creativity was added to the model as mediators; presence of creative coworkers, and employee mastery orientation were played as moderators between HPWSs and employee creativity, then find out more the links between them Quantitative methods are used on a sample of 201 employees working in Vietnam We used model in PROCESS procedure SPSS written by Andrew F Hayes Descriptive analysis, KMO and Bartlett’s test, independent samples T-test One way ANOVA test and Pearson correlation support the validity of the proposed model The results of the paper are the close relationship among HPWSs, creativity and employee performance The analysis shows that HPWSs has the greatest impact on employee performance, following that, the research also shows the significant impact of HPWSs on employee creativity Human resource manager, directors, and policy researchers in Vietnam should consider the results of the study as reference Keywords: high-performance work systems, creativity, task performance, a mastery orientation, a presence of creative coworkers TABLE OF CONTENT LIST OF TABLES ii LIST OF FIGURES iii LIST OF ABBREVIATIONS iv CHAPTER 1: INTRODUCTION 1.1 Background of the research 1.2 Problem statement 1.3 Research objectives 1.4 Research Questions 1.5 Scope of the research 1.6 Importance of the research 1.7 Research structure CHAPTER 2: LITERATURE REVIEW .6 2.1 Conceptualizing HPWSs at the individual level 2.2 HPWSs, creativity and employee performance 2.3 Employee creativity and employee performance 2.4 Presence of creative coworkers and employee mastery orientation as moderators 10 2.4.1 The role of Presence of creative coworkers 11 2.4.2 The role of employee mastery orientation 12 2.5 Research model 13 CHAPTER 3: RESEARCH METHODOLOGY 15 3.1 Research process 15 3.2 Research design 15 3.3 Data collection instruments 16 3.4 Data analysis approach 20 CHAPTER 4: DATA PRESENTATION AND FINDINGS 21 4.1 Demographic results 21 4.2 Descriptive analysis 23 4.3 Common method bias test 24 4.4 Measurement model test 25 4.5 Structural model assessment for hypothesis testing 29 4.6 Analysis summary 32 CHAPTER 5: DISCUSSION AND CONCLUSIONS 33 5.1 Discussion 33 5.2 Theorical implications 34 5.3 Practical implications 35 5.4 Limitations and future research recommendations 36 REFERENCE 38 APPENDIX 41 LIST OF TABLES Table 3.1: Measurement items 17 Table 4.1: Respondent’s background 22 Table 4.2: Descriptive analysis 23 Table 4.3: Common method bias 25 Table 4.4: Reliability test in general 25 Table 4.5: Reliability test in detail 26 Table 4.6: KMO and Bartlett's Test 27 Table 4.7: Independent sample T-test 27 Table 4.8: One way ANOVA test 28 Table 4.9: Pearson correlation 29 Table 4.10: Results of direct relationships 30 Table 4.11: Results of Moderated Mediation 31 ii LIST OF FIGURES Figure 2.1: Research model 13 Figure 3.1 Research Process 15 Figure 4.1: Path coefficient after hypothesis test 31 iii LIST OF ABBREVIATIONS EC EMO EP HPWSs HRM PCC Employee Creativity Employee Mastery Orientation Employee Performance High performance work systems Human resource management Presence of Creative Coworkers iv CHAPTER 5: DISCUSSION AND CONCLUSIONS 5.1 Discussion The study considers the relationship between HPWSs, and employee performance and tests the mediating role of employee creativity, moderating variable of the presence of creative coworkers and employee mastery orientation The research validated the HPWSs scale in the Vietnamese context Furthermore, there is a lack of studies on the relationship between HPWSs, creativity and employee performance and the missing links from HPWSs to creativity Therefore, by using the quantitative method with 201 respondents in Vietnam, the study will fill the gaps According to table 4.2, Vietnamese employees seem to verify their working place has high HRM practices (range from 4.02 to 4.17) Meanwhile, when employees had a chance to qualify themselves as creative or not, the results ranged from 3.73 to 3.83 The hypothesis mentions five different relationships The positive effects of HPWSs on creativity and employee performance are confirmed in this study Furthermore, it has been demonstrated that the presence of creative coworkers and mastery orientation not affect the linkages between HPWSs and employee creativity Analytical findings support hypotheses 1, and According to Hypothesis H1, The HPWSs factor positively affects creativity After examining the discovery factors EFA, checking the reliability with Cronbach's Alpha coefficients, and analyzing hypothesis results, The HPWSs have a good relationship with employee creativity As a result, the hypothesis is confirmed This suggests that the more HPWSs an employee has, the more creative they are The outcome is similar to previous studies on the same topic (Tang, 2017; Ma, 2021; He, 2021) The hypothesized correlation (H2) is supported by the findings That is, HPWSs have a direct impact on the job performance of employees This result is in line with Chang's suggested conceptual framework (2011) In addition, hypothesis H3 is tested using bootstrapping serial mediation (Hayes, 2022) The hypothesis stated that HPWSs have an indirect positive relationship with employee performance through enhancing employee creativity The confidence intervals for the 33 serial mediation effect varied from 0.0292 to 0.2253, β = 0.071, according to Table's findings Our CIs did not include 0, indicating that the serial indirect impact is significant, which supports H2 This means that in the company that implemented HPWSs, employees are encouraged to work with high motivation They will with more productivity and create more ideas constantly to improve their performance The results are also supported by antecedent research (Chang, 2011; Dev, 2016) On the other hand, hypothesis H4 said that the presence of creative coworkers moderates the positive relationship between HPWS and employee creativity The relationship becomes stronger as the presence of coworkers increases EFA excluded incorrect variables after assessing the reliability with Cronbach's Alpha coefficients and examining the discovery factors According to the estimation findings, the presence of creative coworkers does not affect the link between HPWSs and creativity This is contrary to the results from preceding studies (Zhou, 2003; Shih, 2020) on the presence of creative coworkers However, Madjar (2011) proved that the influence of the presence of creative coworkers is more beneficial for incremental creativity than for radical creativity; Since the research did not distinguish between incremental and radical creativity, the results had found no positive effect of the presence of creative coworkers on the relationship Furthermore, hypothesis H5 states that Mastery orientation moderates the positive relationship between HPWS and employee creativity such that the relationship becomes stronger as mastery orientation increases The hypothesis is rejected based on the findings of hypothesis testing, as evidenced by the impact coefficient = -0 0397 and p = 0.5880 > 0.05 Because the primary research shows that mastery orientation will positively improve the link between HPWSs and employee creativity, hypothesis H5 contradicts earlier findings (Janssen & Van Yperen, 2004; Hoa, 2019) As a result, when assessing the missing link between HPWSs and employee creativity, mastery orientation cannot be assumed to have an impact 5.2 Theorical implications This research provides several contributions First, it adds to current literature on employee performance by demonstrating that implementing HPWS improves employee performance Previous research has looked at the relationship between HRM practices 34 and employee performance (Chang, 2011; Zhang, 2013; Dev, 2016) However, there has been little research in the HRM literature that has looked at the influence of HPWS, which may lead to innovative behavior (Carda et al., 2016) Although Chiang et al (2015) claim that HPWS encourages employees to engage in performance through affective commitment, they did not investigate the direct impact of HPWS on employee performance Therefore, our research proved that HPWS positively affects employee performance Second, we show how employee creativity is mediating in the HPWS-employee performance relationship Previous research has highlighted that it is critical to investigate the missing linkages between HRM systems and firm outcomes, particularly individual performance (Jiang et al., 2012, 2013) We present and test a hypothesis on the impact of HPWSs on employee performance via creativity, partly driven by this need to fill a gap in the research The findings extend previous research on the relationship between HPWS and employee performance (Zhang, 2013; Dev, 2016) Furthermore, our findings that workers see HPWSs as a symbol of organizational support and respond with innovative behavior adds to the empirical evidence for the social-exchange theory Final, this study contributes to the current knowledge about HRM in Vietnam, which has grown in importance as a topic of HRM research While several studies have emphasized Vietnam's distinctiveness as a context for people management due to its institutional and cultural traits (Thang, 2005), recent research has also indicated that some HPWSs methods may have a universal influence on the Vietnamese workforce (Hoa, 2019) Our research shows that HPWS benefits, such as development-oriented HR policies and organizational support, are also present in the Vietnamese context, at least in the organizations we researched 5.3 Practical implications The study offers several implications that are essential for both managers and scholars HPWS implementation should be mandatory in all Vietnamese businesses They require it to meet the challenges of globalization and economic diversity by combining the proper people, technology, and organizational structure to maximize the organization's resources and prospects In terms of practical implications, managers may utilize the findings of this study as a guideline to improve the efficacy of HPWS in their enterprises 35 HPWS may increase performance by providing an advantage in development-orientated HR policies and creating a positive environment where employees can maximize their productivity Second, we discover that creativity is a mediator between HPWSs and employee performance This research suggests that HPWS improves employee performance by increasing creativity As a result, directors or HR managers should design management strategies that encourage good HPWSs and innovation to motivate employees Employees should be encouraged to generate more unique ideas after implementing HPWS, resulting in a more excellent performance 5.4 Limitations and future research recommendations The impact of HPWSs on employee performance is investigated through creativity and moderator roles of the presence of creative coworkers and employee mastery orientation Although every precaution was taken to assure the study's impartiality, reliability, and validity, it is not without limits, which future researchers should be aware of First, due to the limited time and resources, the author collected a small number of respondents (201), so the results may not represent all Vietnam companies Second, even though HPWSs is a well-developed study area, scholars have no agreement on how to define it Because HPWSs are measured differently in different studies, the many components involved may impact research findings (Jiang et al., 2012) While some HPWSs components enhance the business as a whole, they are thought to limit specific areas of the organization For instance, in item “11”, the job duties are shaped more by the employee than by a specific job description While it would make it easy for employees to their job daily, it may confuse newcomers when starting the job without guidelines To address this limitation, future studies might collect HPWSs data in bundles and examine their influence on the result separately to see whether there are practices that benefit the company but cause issues for some regions Third, the researchers collected data from only one source (individual point of view), leading to common method bias Future researchers should collect data from more comprehensive sources or employ more objective creative performance assessments 36 Finally, our research's cross-sectional design limits causal conclusions Although the associations we found are in line with our expectations and theories, future research using time-lagged survey data can test the internal validity of our findings 37 REFERENCE Anderson, Neil, et al “Innovation and Creativity in Organizations: A State-of-TheScience Review, Prospective Commentary, and Guiding Framework.” Journal of Management, vol 40, no 5, 2014, pp 1297–1333 Accessed 24 Nov 2021 Akhtar, Sadia, et al “Antecedents of Task Performance: An Examination of Transformation Leadership, Team Communication, Team Creativity, and Team Trust.” Journal of Public Affairs, vol 19, no 2, Apr 2019, 10.1002/pa.1927 Accessed 24 Nov 2021 Al-Ajlouni, Mohammed Iqbal “Can High-Performance Work Systems (HPWS) Promote Organisational Innovation? 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44 Appendix 2: Questionnaire in the English version Hi everyone, My name is Cao Gia Khoa - currently a postgraduate student studying Master of Business Administration program at Vietnam Japan University - Hanoi National University I am doing research on the topic related to High-performance work systems (HPWSs), Creativity and Employee Performance in Vietnam The survey contains general information and 33 questions, is expected to take 10-15 minutes to answer hope you take a moment to help me participate in answering the questionnaire Any information you provided will be kept conbdential Thank you very much for taking the time to help me complete this survey Best regards Cao Gia Khoa Email: 20117012@st.vju.ac.vn Part I: General information Gender:  Male  Female  Khác Age:  From 18 to 22 years old  From 22 to 30 years old  From 31 to 40 years old  Above 40 years old Educational level:  University  College  Post-graduate  Other Type of company where you are working:  State Owned Enterprise  Private Company  Family Company  Foreign Direct Investment Company Number of employees:  Under 29 people  30-99 people  100-499 people  500-999 people  Above 1000 people 45 Experience years:  Under year  1-3 years  3-5 years  5-10 years  Above 10 years Part II: Survey questions Please give your opinion on these items according to the following scale: - Strongly disagree - Disagree - Neutral - Agree - Totally agree The survey questions are arranged randomly Applicants undergo structured interviews before being hired in your company Your company provides employees with training assistance enabling them to upgrade their qualifications Employees have clear career paths within the company Qualified employees have the opportunity to to promoted to positions of greater pay and/or responsibility within the company Performance assessments are conducted regularly The outcome of performance assessment is used for bonus and promotion If the company are facing economic problems, dismissing employees would be the last choice Employees are allowed to make many job-related decisions Employees are often asked by their supervisors to participate in decisions Supervisors keep open communications with employees The actual job duties are shaped more by the employee than by a specific job description Employees have the opportunity to earn bonuses for productivity, performance or other individual performance outcomes In my job, I try new ideas or method first In my job, I seek new ideas and ways to solve problems In my job, I generate ground-breaking ideas related to the field I feel successful on my job when…: I acquire new knowledge or learn a new skill by trying hard 46 I acquire new knowledge or master new skill which was difficult for me in the past I learn something that motivates me to continue I feel I am improving I learn something that makes me want to practice more I learn something new that is fun to I get the maximum out of myself I improve on particular aspects I master new knowledge or a new skill I perform to my potential I my very best I often see my coworkers display creative behaviors at work I consider my coworkers to be role models for creative behavior at work My co-workers generate unique approaches to getting the job done more effectively Please give your opinion on these items according to the following scale: – Very low – Very high The survey questions are arranged randomly Quality of your performance our productivity on the job How you evaluate the performance of your peers at their jobs compared with yourself doing the same kind of work? How you evaluate the performance of yourself at your job compared with your peers doing the same kind of work? Thank you! 47