High-Performance Work Systems and Innovation: The Moderating Effect of Low-Performance Management Practices

Today, many organizations are pursuing innovation in order to survive in a rapidly changing environment. As a result, based on resource-based theory, organizations are introducing various human resource management practices for the growth of workers toward innovation. However, the resulting effect has not been the same for each company. This is because not enough consideration has been given to the relationship between the newly established human resource management practices and the existing practices of the company. The synergy effect of human resource management practices may be weakened or strengthened depending on how the sum of individual practices is bundled. From this point of view, this study conducted an exploration of the synergy between high-involvement work practices in high-performance work systems and low-performance management practices to create innovation based on the AMO framework. Specifically, the Korea Labor Institute's Workplace Panel Survey analyzed the moderating effect of low-performance management practices on the impact of high-involvement work practices for innovation. According to the analysis results, high-involvement work practices had a positive effect on innovation. In addition, the relationship between high-involvement work practices and innovation was moderated positively by pull-type practices among low-performance management practices. On the other hand, among the low-performance management practices, push-type practices did not have a significant moderating effect on the relationship between high-involvement work practices and innovation. Based on the results, we discussed the need for low-performance management and the direction for organizations pursuing innovation in high-performance work systems.