Paper #5

High Performance Work Systems Reality in Multinational Subsidiaries: Lessons from South Eastern European Periphery

Loukas K. Tsironis

Abstract: Recently, a number of studies have focused on the positive relationship between high-performance work systems (HPWS) and organizational performance and its underlying mechanisms. European countries in general and former communist countries is particular have been largely overlooked. It seems crucial to assess the importance of HPWS and its impact on organizational performance in MNC subsidiaries operating in the region. The study examines the sequential mediation of job satisfaction and organizational citizenship behavior (OCB) in the HPWS-organizational performance link. Quantitative data was collected from 181 participants working in MNC subsidiaries operating in the Balkan region (Romania, Serbia, Bulgaria, Albania, FYROM, and Kosovo). The study employed Baron and Kenny (1986) approach to mediation analysis. Findings showed a positive relationship between HPWS and organizational performance. OCB had a partial mediating value in the HPWS performance link. Similarly, job satisfaction partially mediates the relationship between HPWS and organizational performance.

Keywords: High-Performance Work Systems; Multi-National Companies; subsidiary; Organizational Performance; job satisfaction; Organizational Citizenship Behavior; South Eastern Europe.