Total quality management and high-performance work systems for social capital development

Mario J. Donate · Emilio Ruiz · Jesús David Sánchez de Pablo González del Campo · Isidro Peña García‐Pardo

30 citations0/0 files storedJournal of Intellectual Capital

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Intellectual Capital and Performance Analysis Innovation and Knowledge Management Quality and Supply Management

Abstract

Purpose The purpose of this paper is to analyse social capital (SC) development oriented to innovation. The relationship between high-performance work systems (HPWSs) and total quality management (TQM) philosophy is considered in this paper as an enabling factor that allows firms to accumulate SC oriented to develop radical and incremental innovation capabilities (IIC). Design/methodology/approach This paper establishes hypotheses and a model based on partial and total mediating effects of SC to develop innovation capabilities, which are focused on previous unexplored connections between HPWS and TQM and their effects on SC. The model and hypotheses are statistically tested through a partial least squares approach to structural equations models in a multi-industry sample of Spanish companies. Findings The study results show a system of specific human resource practices connected to SC development. Moreover, SC is found to be a mediating factor in the relationship between TQM and IIC, although the effect is not significant when radical innovation capabilities (RIC) are considered in the model. Finally, it is shown that HPWS partially mediates the relationship between TQM and SC. Research limitations/implications This paper mainly contributes to the study of organizational context enablers for intellectual capital (IC) development from a knowledge-based view, especially when firms are seeking to build or improve innovation capabilities. As a managerial approach, HPWSs and TQM are shown as powerful tools to establish prolific contexts for SC development, especially when TQM is rightly supported by a HPWS. Originality/value This is a quantitative study that analyses, for the first time, predictive relationships between popular tools such as TQM and HPWSs to create an organizational context for SC development, considering a multi-industry sample of firms. Important implications are also drawn to help managers to create IC assets related to social interaction and network relationships.

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References

1981Evaluating Structural Equation Models with Unobservable Variables and Measurement Error 1951Coefficient Alpha and the Internal Structure of Tests 1986Self-Reports in Organizational Research: Problems and Prospects 1995Bowling Alone: America's Declining Social Capital 1998Social Capital, Intellectual Capital, and the Organizational Advantage 1998The partial least squares approach for structural equation modeling.2002Social Capital: Prospects for a New Concept 1998SOCIAL CAPITAL AND VALUE CREATION: THE ROLE OF INTRAFIRM NETWORKS.

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