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Title

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

Document Type

Article

Publication Date

2019

Department/School

Management

Publication Title

Journal of Management and Organization

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.

Link to Published Version

10.1017/jmo.2017.30

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