HIGH PERFORMANCE WORK PRACTICES AND PERFORMANCE OF SERVICES OUTSOURCING FIRMS

Abstract

The purpose of the study is to investigate the effects of high performance work practices on performance of services offshore outsourcing firms in terms of innovativeness, quality of service, and competitiveness. The novel character of this research is that it investigated the effects of several high performance work practices on three outcome variables, which until recently had been studied separately, within an extended framework in a single study. Survey methodology was used and 424 respondents who fulfilled the selection criteria set for the study, responded. The hypothesized relationships were examined by structural equation modelling. It was found that high performance work practices of talent engagement, knowledge availability, workforce optimisation, managerial practices, and job related training are significantly positively related to innovativeness, quality of service, and competitiveness. Further, the findings provide empirical evidence that the three outcome variables are interconnected.