The Cross-Country Generalizability of High-Performance Work Practices and Interactions of Internal Promotions with Organizational Capital and Innovation Strategy on Market, Operational, and Financial Performance

Abstract

High Performance Work Practices (HPWPs) research lacks a consistent measure with good psychometric properties impeding the growth and accumulation of knowledge. This study provides empirical support for a reliable, multi-dimensional, cross-culturally generalizable, and valid measure of HPWPs. The Ability, Motivation, and Opportunity (AMO) framework provided a theoretical foundation (Appelbaum, Bailey, Berg, & Kalleberg, 2000). This new measure maps onto each of the three dimensions of the AMO framework. Data from multiple managers working for companies in 18 different countries (N = 3,289) showed cross-cultural measurement equivalence and other good measurement properties. Validity was demonstrated by focusing on one understudied practice, Internal Promotions, showing that it generally has a positive impact on organizational performance. However, in organizations with higher Organizational Capital, or those organizations using an Innovation Strategy, Internal Promotions impaired organizational performance, thereby confirming theory based hypotheses derived from the Peter Principle. This demonstrated how the measurement of distinct practices can be used as a basis for studying intriguing questions about HPWPs.