Affiliations: [a] Post-Graduate Centre, Limkokwing University of Creative Technology, Cyberjaya, Malaysia
| [b] School of Management and Economics, Beijing Institute of Technology, Beijing, China
| [c] Faculty of Management Sciences, ILMA University, Karachi, Pakistan
Correspondence:
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Corresponding author: Muhammad Farrukh, School of Management and Economics, Beijing Institute of Technology, Beijing, China. E-mail: mfarrukhiqbal@hotmail.com.
Abstract: BACKGROUND:Nothing we do is more important than hiring and developing people. At the end of the day, you bet on people, not on strategies,” Lawrence Bossily. OBJECTIVE:Drawing on the above quote, this study investigates the role of High-performance work practices (HPWP) in fostering innovative work behaviour (IWB) of service sector employees. METHODOLOGY:Data collected by structured questionnaires were analysed through the structural equation modelling technique. RESULTS:Findings showed that selection and training & development play a significant role in fostering innovative work behaviour. Moreover, self-efficacy proved to be a significant mediator in the mechanism of HPWP-IWB. CONCLUSION:The finding of the study underpins the reciprocity perspective of the social exchange theory (SET). Additionally, the study also endorses that human resources are not a thing companies do. It is the thing that runs businesses.
Keywords: Innovative work behaviour, high-performance work system, structural equation modelling
