Xiaowen Tian

Integrating the job demands-resources (JD-R) theory with the institutional theory, this study investigates the role of labor market regulations in moderating the relationship between high-performance work systems (HPWS) and organizational performance (OP). The study posits that labor market regulations influence job demand and the resources to buffer job demand, and thereby the HPWS-OP relationship. However, these regulations can either hinder or facilitate the HPWS-OP relationship. Using hierarchical linear modeling in a meta-analysis of 59,265 business entities across 25 countries/regions from 246 sample studies available as of April 2024, this study reveals that stringent hiring and firing regulations limit the performance effect of HPWS, while strict work hour regulations enhance the functionality of HPWS. Moreover, centralized collective bargaining provisions do not significantly moderate the HPWS-OP relationship. This study enriches the theoretical understanding of strategic human resource management through a contextualized framework, highlighting the multifaceted effects of formal institutional environments on HPWS interventions and OP outcomes. It offers meaningful implications for managers in deploying HPWS and for policymakers in legislative development.