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Main effects reveal that only human resource management effectiveness affects market performance and that HPWPs affect innovation. However, interacting HPWPs with HRM effectiveness positively relates to both market performance and innovation in support of our hypothesis. The results suggest that effective HRM can offset HP WP's expense and that HPWPs can enhance the flexibility of effective HRM systems.
High performance work practices (HPWPs), through significant investment in employees, have been touted as a way to make organizations more flexible and effective. Often HPWPs are viewed as an alternative to traditional productions systems that are firmly rooted in Fredrick Taylor's scientific management and subsequent Fordist principles...
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