Effects of high-performance work systems on transformational leadership and team performance: Investigating the moderating roles of organizational orientations

Abstract

This study integrates strategic human resource management (SHRM) and transformational leadership (TFL) literatures to address gaps in each of the two literatures. Building on the concept of strategically targeted HRM systems and the contingency perspective in SHRM, we propose that an organization's high-performance work system (HPWS) affects team managers' TFL, and that the emergence of TFL and the effectiveness of TFL on team performance are contingent on organizational adaptation and efficiency orientations. Analyses of multilevel data from 179 teams in 44 organizations revealed a positive relationship between HPWS and TFL, which was positively and negatively moderated by adaptation and efficiency orientations, respectively. Further, TFL was positively related to team performance and negatively moderated by efficiency orientation. Finally, the results supported a multilevel, moderated mediation effect with the indirect effect of HPWS on team performance via TFL varying significantly as a function of adaptation and efficiency orientations. Implications for the SHRM and leadership literatures and practice are discussed.