High-Performance Work Systems and Employee Performance of Selected Manufacturing Firms in Nairobi City County, Kenya

Abstract

The study purposefully examined how the implementation of high-performance work systems (HPWS) influences employee performance of selected manufacturing firms in Kenya. The study adopted an explanatory research design with a target population of 6,254 employees from the selected manufacturing firms, with a sample size of 361 employees sampled through a proportionate stratified sampling technique. A structured questionnaire was used, and the data were analysed using both descriptive and inferential statistics. The study adopted items from empirical studies and tested reliability using Cronbach's Alpha coefficient > 0.7. Hierarchical regression analysis based on the Hayes (2018) Process 4.2 macro tested the hypothesis at a 0.05 significance level. The study revealed that high-performance work systems (β = 0.629, p < 0.05) significantly and positively predicted employee performance. Thus, HPWS directly affect employee performance. The implications of the study are that novel and tested HR techniques and approaches offer alternative and unique benefits to manufacturing firms when contextually applied. In terms of policy, HPWS is a powerful HR tool that augments employee performance for each individual firm in the manufacturing sector. Lastly, the social exchange theory offers an enriching theoretical perspective that supports and augments the application of the HPWS as a mutually–reinforcing HR practice to both the employee and the firm.