A Mediation Model of Economic and Social Exchange and Its Effect on High-Performance Work Systems and Employee Well-Being

Abstract

High-performance work systems have become a significant concept in human resource management research. The goal of this study is to both theorize and test a research paradigm that looks at the link between high-performance work systems (HPWS) and employee well-being (EWB) through the processes of economic and social exchange as mediators. These findings are based on information gathered from 690 Saudi service sector employees across a wide range of positions. Partial least squares structural equation modeling was utilized in the current study to test the developed hypotheses. The findings suggested significantly positive direct relationships between HPWS and EWB. Furthermore, economic and social exchanges partially mediated the associations between HPWS and EWB. This research adds to the expanding body of literature linking EWB and productivity, as well as helping to solve the "black box" mystery of how HPWS affects actual work outcomes. This study contributes further empirical data to the field of human resource management by analyzing whether HPWS are beneficial or detrimental to EWB. Finally, managerial and theoretical implications are suggested to enhance our understanding of how HPWS affects EWB.