High Performance Work Systems, Organizational Ambidexterity and Performance: A Critical Review of Literature and Conceptual Framework

Abstract

Organizational effectiveness, the ultimate objective of high performance organizations, is hinged on effective alignment of human resources with the strategic goals of the organization. The globalization of economies and increasing demands of a highly volatile business environment has placed considerable pressure on organizations to be flexible and innovative to survive. Maximizing and optimizing efficiency and flexibility requires organization to be ambidextrous, that is, exploit and explore. Studies on organizational ambidexterity show that high-performance work systems (HPWS) can promote ambidexterity and that this results in better firm performance the objective of this paper is to bring to the fore the underpinning theories explaining the relationship between HPWS and performance, the mediating role of organizational ambidexterity, and moderating effect of organizational climate on this relationship. The study also brings to currency the state of research in this topic by reviewing relevant studies and consequently revealing the research gaps which would inform future research. Finally, besides proposing a conceptual model, this study also suggests research methodology and measurement of variables in future research.