The Mediating Effects of HR Outcome and Operational Outcome in the Relationship between HPWS and Financial Performance in Public Enterprises in Ethiopia

Wondimagegne Assefa Reda and Berhanu Temesgen Eshetu
Additional contact information
Wondimagegne Assefa Reda: Mekdela Amba University, South Wollo, Amhara Region, Ethiopia
Berhanu Temesgen Eshetu: Addis Ababa University, Addis Ababa, Ethiopia

Annals of the University of Craiova for Journalism, Communication and Management, 2025, vol. 11, issue 1, 125-132

Abstract: This study examines the contribution of high performance work system (HPWS) to organizational performance in the public sector in a developing country context. It relates HPWS to the human resource (HR) outcome, operational outcome, and financial performance of public enterprises in Ethiopia by focusing on the mediating effects of HR outcome and operational outcome. The results of the structural equation modeling (SEM) analysis, based on data gathered on a survey of 480 managers who work in nine public enterprises, demonstrate that operational outcome has a significant positive mediating effect in the HPWS-financial performance relationship. The research advises the public enterprises to design and implement HPWS practices as increased use of HPWS in the enterprises has a significant direct and indirect positive effect on financial performance. The paper suggests future researchers to examine the effects of high commitment work system (HCWS) and high involvement work system (HIWS) on the performance of public enterprises in a developing country context.

Keywords: HPWS; HR outcome; operational outcome; financial performance; public enterprise; Ethiopia (search for similar items in EconPapers)
JEL-codes: L3 M12 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://aucjc.ro/wp-content/uploads/2025/07/aucjcm-11-125-132.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:edt:aucjcm:v:11:y:2025:i:1:p:125-132

DOI: 10.5281/zenodo.15851165

Access Statistics for this article

Annals of the University of Craiova for Journalism, Communication and Management is currently edited by Dan Valeriu Voinea

More articles in Annals of the University of Craiova for Journalism, Communication and Management from Department of Communication, Journalism and Education Sciences, University of Craiova
Bibliographic data for series maintained by Dan Valeriu Voinea ().