High performance work systems in India: A conceptual framework linking employee engagement, innovation, and organisational performance

Abstract

High Performance Work Systems (HPWS) have received considerable attention in human resource management research, yet most existing evidence originates from Western economies. As India emerges as a major global economic power, understanding how HPWS function within its distinct institutional and cultural setting becomes increasingly important. This paper develops a conceptual framework, grounded in the Ability Motivation Opportunity (AMO) theory and the black box perspective, proposing that employee engagement and employee innovation mediate the relationship between HPWS and organisational performance in Indian firms. The framework further identifies Indian cultural dimensions, namely power distance and collectivism, along with sectoral characteristics across information technology and manufacturing, as key moderators of this relationship. The paper contrasts HPWS practices in India with those observed in Western countries across dimensions such as decision making, recruitment, compensation, and conflict resolution, and illustrates the framework through case discussions of Tata Steel and Infosys. It also examines practical barriers to HPWS adoption in India, including resource constraints among small and medium enterprises and persistent talent shortages. The paper concludes with actionable implications for managers and a research agenda encouraging longitudinal studies and greater attention to employee perspectives on HPWS in emerging Asian economies.