The Nexus of High-Performance Work Systems and Employee Perceived Innovation Performance: Unveiling the Mediating Role of Human Capital – A Study of Banking Industry in Compliance with SDGs (2023)

Abstract

This research endeavors to investigate into the complex dynamics within the banking industry, specifically focusing on the interrelationships among Human Capital Management (HCM), High-Performance Work Systems (HPWS), and the Perceived Innovative Performance of Employees (PIPE), in compliance with Sustainable Development Goals (SDGs). This study employs a quantitative research approach to investigate the complex relationships between HPWS, HCM, and PIPE within the banking industry. The population under scrutiny were individuals within the banking sector in Karachi, Pakistan; a sample size of 398 respondents ensures a robust and representative dataset. The study leverages advanced statistical techniques, particularly Partial Least Squares-Structural Equation Modeling (PLS-SEM). Findings show the complex relationship between HPWS, HCM, and PIPE in the banking industry. It is observed that the mediation effect of HCM influences the relationship between HPWS and organisational effectiveness. Comprehensive statistical analysis shows that HCM mediates between HPWS and performance.