High performance work systems, workforce productivity, and innovation: a comparison of MNCs and indigenous firms
Guthrie, James P. and Liu, Wenchuan and Flood, Patrick C. and MacCurtain, Sarah (2008) High performance work systems, workforce productivity, and innovation: a comparison of MNCs and indigenous firms. LInK Working Paper Series. (Paper No. 04-08). The Learning, Innovation and Knowledge Research Centre, Dublin City University, Ireland.
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Previous research has reported conflicting results on whether or not foreign-owned firms diverge from indigenous firms with respect to their human resource policies and
practices. Set in the dynamic, globalized economy of the Republic of Ireland, this study examines the relative use of high performance work systems (HPWS) by foreign-owned versus Irish-owned firms. We also investigate the implications of HPWS use for organizational effectiveness. Results suggest substantial differences associated with country of ownership. Relative to Irish-owned firms, foreign-owned firms report higher HPWS utilization and higher rates of workforce productivity and innovation. Results suggest that the relationship between country of ownership and organizational effectiveness is mediated by the use of HPWS.
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