Further Exploring the Links between High Performance Work Practices and Firm Performance: A Multiple-mediation Model in the German Context

To improve our understanding of the relationships between high performance work systems and firm performance, several studies have analyzed the mediating effects of motivationrelated or human capital-related variables. However, most of these have concentrated on single aspects and are U.S.-focused. We extend previous HRM research by simultaneously analysing the relevance of four general mediating mechanisms: human capital, employee attitudes, employee performance, and operational performance. We apply structural equation modeling with formative constructs to data of 1,099 German firms. While our findings support the assumption of positive relationships between high performance work practices, the four mediating mechanisms, and firm performance, they also reveal some peculiarities attributable to the German context. Using formative constructs, we could also show that single high performance work practices have different effects on firm performance.