High Performance Work System and Organizational Entrepreneurship: Investigating the Role of HR System's Strength

Experts believe that human resource system due to causal ambiguity and complexity can create competitive advantage as a valuable, rare, inimitable and non-substitutable source, but few studies supporting this claim have been conducted. This study investigats the relationship between high performance work system and organizational entrepreneurship while investigates the moderating role of HR system strength. The data for this study was gathered from 242 knowledge employees of five premier dairy production companies in Mazandaran province. Reliability of the measures was evaluated by Cronbach's alpha and construct validity was evaluated by confirmatory factor analysis. The hypotheses wer tested by hierarchial regression based on Baron and Kenny's method. According to the results of this study, HPWS has positively significant effect on organizational entrepreneurship. Also, HR system's strength moderates the relationship between the independent and dependant variables of this study. The results of this study show that considering just to the content of HR system is not enough, but Hr system must be strong enough to differenciate an organization from other organizations and create competitive advantage.