•This study examines the association between the usage of high-performance work systems (HPWS) by subsidiaries of multinational enterprises (MNEs) in Turkey and employee and subsidiary level outcomes. •The study is based on a survey of 148 MNE subsidiaries operating in Turkey. •The results show that the usage of HPWS has a significant positive impact on employee effectiveness. However, their impact on employee skills and development, and organizational financial performance are far less clear. •Our findings highlight the extent to which HWPS need to be adapted to take account of context-specific institutional realities.