HIGH-PERFORMANCE WORK SYSTEMS, ENTREPRENEURIAL ORIENTATION, AND INNOVATION STRATEGY IN DEVELOPING COUNTRIES

Abstract

Innovation strategy has become an important recent challenge in today’s competitive conditions of developing countries. In this paper, the impact of high-performance work systems (HPWSs) on innovation strategy of knowledge-based enterprises is examined, considering the mediating role of entrepreneurial orientation. The statistical sample of study includes 180 managers and employees of Iranian knowledge-based companies. Data were collected using standard questionnaire, and the structural equation method was used for data analysis. The results showed that HPWSs have a positive and significant impact on innovation strategy of knowledge-based companies and about 75% of the total effect of the HPWS on innovation strategy is explained indirectly by the mediating variable of entrepreneurial orientation.