An empirical examination of the relationship between skills shortage and firm performance: The role of high-performance work systems

Amina R. Malik, Laxmikant Manroop and Pankaj C. Patel

Journal of Management & Organization, 2019, vol. 25, issue 5, 695-710

Abstract: There has been growing scholarly interest in the relationship between high-performance work systems and firm performance. Yet, limited research attention has been given to the impact of high-performance work systems on firm performance during skills shortages. In this study, we empirically examine the influence of high-performance work systems on firm performance in the midst of skills shortages. Results from a study of 211 US firms with 50 or more employees demonstrate that internal skills shortages are not related to firm profitability. Findings further show that the use of high-performance work systems is more detrimental to firm performance for firms when they face an internal skills shortage. These results are discussed and future research directions are offered.

Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:cup:jomorg:v:25:y:2019:i:05:p:695-710_00

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