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An empirical examination of the relationship between skills shortage and firm performance: The role of high-performance work systems

Published online by Cambridge University Press:  22 May 2017

Amina R. Malik ,
Laxmikant Manroop  and
Pankaj C. Patel
Amina R. Malik
Affiliation:
School of Business, Trent University, Oshawa, ON, Canada
Laxmikant Manroop*
Affiliation:
College of Business, Eastern Michigan University, Ypsilanti, MI, USA
Pankaj C. Patel
Affiliation:
Frank J. and Jane E. Ryan Endowed Chair in Strategy and Innovation, Villanova University, Villanova, PA, USA
*
Corresponding author: lmanroop@emich.edu
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Abstract

There has been growing scholarly interest in the relationship between high-performance work systems and firm performance. Yet, limited research attention has been given to the impact of high-performance work systems on firm performance during skills shortages. In this study, we empirically examine the influence of high-performance work systems on firm performance in the midst of skills shortages. Results from a study of 211 US firms with 50 or more employees demonstrate that internal skills shortages are not related to firm profitability. Findings further show that the use of high-performance work systems is more detrimental to firm performance for firms when they face an internal skills shortage. These results are discussed and future research directions are offered.

Keywords

human resource managementhigh-performance work systemsskill shortagesfirm performance
Type
Research Article
Information
Journal of Management & Organization , Volume 25 , Issue 5 , September 2019 , pp. 695 - 710
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2017 

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Footnotes

║

These authors contributed equally to this article and are listed alphabetically according to surnames.

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