VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM – JAPAN UNIVERSITY CAO GIA KHOA RELATIONSHIP BETWEEN HIGH- PERFORMANCE WORK SYSTEMS AND TASK PERFORMANCE, ANALYSIS OF MEDIATORS AND MODERATORS MASTER'S THESIS VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM – JAPAN UNIVERSITY CAO GIA KHOA RELATIONSHIP BETWEEN HIGH- PERFORMANCE WORK SYSTEMS AND TASK PERFORMANCE, ANALYSIS OF MEDIATORS AND MODERATORS MAJOR: BUSINESS ADMINISTRATION CODE: 8340101.01 RESEARCH SUPERVISORS: PROF. MOTONARI TANABU DR. TRAN HUY PHUONG Hanoi, 2022 COMMITMENT I assure that the thesis title "Relationship Between High-Performance Work Systems and Task Performance, Analysis of Mediators and Moderators" is my personal research under the supervision of Prof. Motonari Tanabu and Dr.
Tran Huy Phuong. The data used in the thesis is truthful, and the quantitative analysis and conclusions of the thesis were not public in any other research. The source of citation for this thesis is fully stated. I pledge with personal honor that this research result is my own and does not violate the Regulation on prevention of plagiarism in academic and scientific research activities at VNU Vietnam Japan University (Issued together with Decision No 700/QD-ĐHVN dated 30/9/2021 by the Rector of Vietnam Japan University).
I am able and willing to take responsibility for my thesis. Hanoi, Jul 2022 Author Cao Gia Khoa ACKNOWLEDGMENT For two years studying at Vietnam Japan University, I had chance to gain much knowledge that I have not known before. I am very happy to write my thesis with my favorite topic – human resource. From the bottom of my heart, I would like to say big thank to all professors and doctors at Vietnam Japan University and Yokohama National University for teaching me valuable subjects that I applied on the research, and I also believe this knowledge I not only use for my thesis but also, I can use in my career.
Firstly, I would like to express my sincere gratitude to Professor Motonari Tanabu and Dr. Tran Huy Phuong, for their consistent support and guidance during the time. Without their prompt and patience, I would not have been able to fulfill the thesis. Secondly, I would like to say a special thank you to Prof.
Yoshiki Matsui, Prof. Hisashi Kuruta and Prof. Sadami Suzuki for their comments and advice to improve my thesis in weekly seminar. Finally, I would like to express my sincere gratitude to MBA program assistant Ms.
Huong, my classmates who are always supported and encouraged me finish the thesis. I would like to thank all people who helped me to do the surveys, that I make me to fulfill the research step by step. ABSTRACT The study investigated the relationship among human resource systems, individual employee characteristics and the outcomes. Human resource system plays a role as an important factor in the company, so improving a human resource system would help increase the performance of employees, and then the performance of company in general.
To do this, the author set high performance work systems (HPWSs) as the independent variable, employee performance as the dependent variable. Besides that, employee creativity was added to the model as mediators; presence of creative coworkers, and employee mastery orientation were played as moderators between HPWSs and employee creativity, then find out more the links between them. Quantitative methods are used on a sample of 201 employees working in Vietnam. We used model 9 in PROCESS procedure SPSS written by Andrew F.
Descriptive analysis, KMO and Bartlett’s test, independent samples T-test One way ANOVA test and Pearson correlation support the validity of the proposed model. The results of the paper are the close relationship among HPWSs, creativity and employee performance. The analysis shows that HPWSs has the greatest impact on employee performance, following that, the research also shows the significant impact of HPWSs on employee creativity. Human resource manager, directors, and policy researchers in Vietnam should consider the results of the study as reference.
Keywords: high-performance work systems, creativity, task performance, a mastery orientation, a presence of creative coworkers. TABLE OF CONTENT LIST OF TABLES. ii LIST OF FIGURES. iii LIST OF ABBREVIATIONS.
iv CHAPTER 1: INTRODUCTION.1 Background of the research .5 Scope of the research .6 Importance of the research. 5 CHAPTER 2: LITERATURE REVIEW.1 Conceptualizing HPWSs at the individual level .2 HPWSs, creativity and employee performance .3 Employee creativity and employee performance .4 Presence of creative coworkers and employee mastery orientation as moderators .1 The role of Presence of creative coworkers .2 The role of employee mastery orientation. 13 CHAPTER 3: RESEARCH METHODOLOGY .3 Data collection instruments .4 Data analysis approach. 20 CHAPTER 4: DATA PRESENTATION AND FINDINGS .3 Common method bias test .4 Measurement model test .5 Structural model assessment for hypothesis testing.
32 CHAPTER 5: DISCUSSION AND CONCLUSIONS .4 Limitations and future research recommendations .41 LIST OF TABLES Table 3.3: Common method bias.4: Reliability test in general.5: Reliability test in detail .6: KMO and Bartlett's Test .7: Independent sample T-test .8: One way ANOVA test.10: Results of direct relationships .11: Results of Moderated Mediation. 31 ii LIST OF FIGURES Figure 2.1: Path coefficient after hypothesis test. 31 iii LIST OF ABBREVIATIONS EC Employee Creativity EMO Employee Mastery Orientation EP Employee Performance HPWSs High performance work systems HRM Human resource management PCC Presence of Creative Coworkers iv CHAPTER 1: INTRODUCTION 1.1 Background of the research After the reform, call Doi Moi in 1986, Vietnam has seen the remarkable change in society as well as economy. The GDP growth rate has significantly increased year after year.
As a part of the revolution, Vietnam moved from traditional socialist economy to the country where public and private ownership coexist. Different ownership structures, policies, and interactions with internal and external stakeholders may result from different ownership systems. As a result, these distinctions may have an impact on how a human resource is managed (HR practices) (Zhu, 2008). When Vietnam opened and welcomed the investment from oversea, the number of foreign companies established in Vietnam increased significantly.
According to a General Statistics Office of Vietnam, Vietnam had more than 810,000 working enterprises in 2020. As the result, the labor market is become more and more competitive. To survive, the company needs to find new ways to reach talents and build their own sustainable competitive advantage. Some studies suggested the companies should develop and utilize rare, valuable, inimitable, and non-substitutable resources (Barney, 1991; Barney et al.
Based on that, Wright et al. (1994) referred human resources, while Lado and Wilson (1994) recommended Human resource management practices (HRM practices) are critical in the workplace and can provide a long-term competitive advantage. It is true that human capital has continuously surpassed other conventional forms of competitive advantage such as product technology, process, market regulation, and access to financial sources as a more intangible kind of competitive advantage (Pfeffer, 1999). Empirical research in the West (mainly in the US and the UK) have proved a “huge contributing” of HRM practices on the outcomes of the company.
For instance, HRM practices help to improve company performance (Huselid, 1995; Evans, 2005; Sun, 2007; Pattnaik, 2019), organizational innovation (Ai-Ajlounni, 2020). Otherwise, the topic was founded to conduct across countries (Bae et al., 1998) and some hypotheses were added to clarify more aspects. This context impact explains the widespread use of this sort of research in non-Western cultures, for instance China (Chang, 2012; Zang, 1 2013), Jordan (Al-Ajlouni, 2020), Pakistan (Bhatti, 2020), Vietnam (Hoa, 2019). This research constantly uncovers a strong link between HRM practices and company outcomes.
On the other way, it becomes clear that the way organizations combine HRM practices, as well as the impact of such bundles on company performance. As a result, the validity of these findings in other situations, such as developing and transitional countries, may be questioned. Napier and Vu (1998) claimed that most nations in the developing or transitional world face unique difficulties when they apply HRM practices due to recent economic, political, and social upheavals. As a result, we investigate the influence of high-performance work systems (HPWSs), a typical example of HRM systems, on employee performance.
To close this gap, our research attempts to expand on the growing non-Western literature on the influence of HRM practices at the individual level into this understudied sector. Vietnam looks to be an interesting testing ground for this purpose, given its enormous ethnic, religious, and cultural diversity (McLeod, 2001). HPWSs, according to several important studies on the subject, are a collection of practices that often contain and apply to selection, training, career development, and motivating practices including performance assessment, compensation for performance, and job security. The impact of HR procedures on employee attitudes and behaviors develops into a chain of impacts (Boxall, 2012).
Managers must design such procedures, which must then be adopted throughout the organization. The development and execution of these procedures, however, will not ensure the 'intended' outcome on employees if they are not viewed appropriately. As a result, when it comes to changing individual attitudes, behaviors, and results, perception is crucial (Takeuchi, 2013). According to Zhang et al.
(2013), HRM practices have a greater impact on employee- related results than on organizational outcomes. HPWS's HR practices are adaptable, which improves organizational performance by including and motivating people. HPWSs focuses on building intellectual capital and inspiring individuals to achieve corporate goals, as well as providing opportunity for them to do so. It is a significant contributor to organizational success because it transfers responsibility for improving corporate performance from management to people (Boxall & Purcell, 2013).
It has a 2 synergistic effect by merging organizational and HR initiatives, which leads to improved performance.2 Problem statement Previous strategic HRM research has consistently found a link between HPWS and organizational performance (Huselid, 1995; Cappelli, 2001; Evans, 2005; Boxall, 2007), some scholars have recently voiced concerns about some aspects of this finding. Organizational research in macro-level dominated strategic HRM research. Even though "people" are viewed as critical participants in organizational operations, research into how various HR policies or systems affect individuals is lacking (Wright & Boswell 2002). Furthermore, numerous skeptics asserted that the relationship between HRM systems and organizational/individual outcomes may not be as simple as often assumed, and that it may be more difficult to establish (Wright & Gardner 2003).
According to Jackson, Schuler, and Rivero (1989), Different employment practices, such as HPWS, are used by businesses to elicit and control employees’ attitudes and behaviors, resulting in better results. Therefore, the current research aims to determine the influence of HPWSs on work performance (employee point of view). In addition, Boxall et al. (2010) stressed the need of exploring into the "black box" that occurs between HPWS and its impacts.
Jiang et al. (2012, 2013) reviewed 74 papers, with 69 of them focusing on variables that mediate the relationship between HRM practices and company performance. However, there are few studies that look at the influence of creativity, the presence of creative coworkers, and employee mastery orientation in the link between HPWSs and employee performance. As a result, the focus of the research has been on HPWSs and employee performance correlations.
Additionally, the mediating influence of creativity between perceived HPWSs and employee performance, as well as the moderating role of the presence of creative coworkers and employee mastery orientation, will be studied (both are unexplored till now). This study's theoretical contribution is to add two factors to the present model: the presence of creative coworkers and employee mastery orientation, to analyze and identify the link between HPWSs and employee creativity. The study's practical contribution is that the findings reveal a general link between HPWSs and employee 3 performance. This result will be a useful reference for strategic human resources researchers, board of directors or managers who must decide HR strategies and policies to improve the performance in the company.3 Research objectives To validate the HPWSs in the Vietnamese context.
To study the role of creativity between HPWSs and employee performance. To evaluate the role of presence of creative coworkers and employee mastery orientation between HPWSs and creativity.