The trajectory of HPWS and firm performance : A longitudinal study from 2005 to 2011

Answering recent calls for considering longitudinal perspectives in human resource management (HRM) research, we focus on the effect of high-performance work systems (HPWS) dynamics in Korean firms during 2005 to 2011. Based on the resource-based view, the social exchange theory, and the employee-organization framework, we assert that not only HPWS in one time, but also average of HPWS over time relate to later firm performance. Moreover, we suggest that HPWS trajectory, which refers to the degree of HPWS change over time, also has positive relationship with firm performance. In addition, we propose that HPWS trajectory negatively moderates the association between average of HPWS and firm performance. Hierarchical regression analysis is used to test research hypotheses with a sample of 237 firms based on four discrete periods (i.e., 2005, 2007, 2009, and 2011) in South Korea. The results of this study support all three hypotheses. Moreover, further analysis is conducted to facilitate discussion about the effect of HPWS change. Implications and future research directions are discussed.