Beyond the High-Performance Paradigm: Exploring the Curvilinear Relationship between High-Performance Work Systems and Organizational Performance in Taiwanese Manufacturing Firms

Abstract

In this study, we explore the potential downside of the ‘high-performance’paradigm by examining the curvilinear relationship between high-performance work systems (HPWS) and organizational performance and the moderating effects of the industry type. Using data from Taiwanese manufacturing firms, we find an inverted-U pattern between HPWS and organizational performance in high-technology firms (N = 74), and a linear relationship in traditional manufacturing firms (N = 86). These findings are consistent with the viewpoint of diminishing returns of HPWS and the contingency perspective. Theoretical and practical implications of our findings are also discussed.