High-performance work system implementation in small and medium enterprises: A knowledge-creation perspective

While it is well established that high-performance work systems (HPWSs) affect firm-level outcomes within large, complex organizations, less is known about how they create benefits for firms within the small-business sector. Using a knowledge-creation perspective, this study examines the impact of HPWSs in small and medium enterprises and examines whether the impact observed depends on the small-business leader's capacity to obtain additional HR knowledge from an external expert, as well as the leader's HR background and knowledge. Archival and survey data were obtained from 294 small-business organizations, with survey responses obtained from both the small-business leader and an HR consultant assigned to the small business. Findings suggest that leader perceptions of HR effectiveness are positively related to the use of HPWSs and that this relationship is moderated both by the communication patterns between the small-business leader and the HR consultant assigned to the firm and the small-business leader's HR knowledge.