Strategic Flexibility and Social Networks in the Effect of High-Performance Work Systems on Organizational Performance

Hamideh  Shekari; Belal  Panahi; Mehdi  Famil Dardashti

Authors

Hamideh Shekari Assistant Professor, Department of Public Administration, Payame Noor University, Tehran, Iran Corresponding Author https://orcid.org/0000-0002-8003-0765
Belal Panahi Associate Professor, Department of Management, Payame Noor University, Tehran, Iran Author https://orcid.org/0000-0001-7944-5421
Mehdi Famil Dardashti M.A. in Business Administration, Payame Noor University, Tehran, Iran Author https://orcid.org/0009-0005-3613-7636

Keywords:

High-Performance Work Systems; Organizational Performance; Strategic Flexibility; Social Networks; Structural Equation Modeling.

Abstract

Objective: This study aimed to investigate the effect of high-performance work systems on organizational performance through the mediating role of strategic flexibility and the moderating role of social networks among engineers working in construction and urban development projects in District 4 of Isfahan Municipality.

Methods and Materials: This applied study employed a descriptive-survey and cross-sectional design. The statistical population consisted of 250 civil and urban development engineers and engineers employed by construction companies undertaking projects within District 4 of Isfahan Municipality. Based on the Morgan and Krejcie sample-size table, a minimum sample of 148 participants was determined, and data from 151 completed questionnaires were ultimately included in the analysis. Data were collected using a structured questionnaire measuring high-performance work systems, organizational performance, strategic flexibility, and social networks. Construct validity was assessed through factor analysis. The measurement and structural models were evaluated using structural equation modeling. Statistical analyses were conducted using SPSS version 24 and SmartPLS version 4.

Findings: The inferential analyses supported all proposed hypotheses. High-performance work systems had a positive and statistically significant direct effect on organizational performance. High-performance work systems also exerted a positive and significant effect on strategic flexibility, while strategic flexibility demonstrated a positive and significant effect on organizational performance. The mediation analysis further indicated that strategic flexibility significantly mediated the relationship between high-performance work systems and organizational performance, demonstrating that part of the organizational performance benefits associated with high-performance work practices operates through enhanced strategic adaptability and responsiveness. Moreover, the moderation analysis confirmed that social networks significantly moderated the effect of high-performance work systems on strategic flexibility, indicating that stronger social networks reinforced the capacity of high-performance work systems to promote strategic flexibility.

Conclusion: The findings demonstrate that high-performance work systems can enhance organizational performance both directly and indirectly by strengthening strategic flexibility. Strategic flexibility therefore constitutes an important organizational mechanism through which integrated high-performance human resource practices are translated into improved performance outcomes. Furthermore, the significant moderating role of social networks suggests that relational and social resources can strengthen the contribution of high-performance work systems to organizational adaptability. Organizations, particularly those operating in dynamic construction and municipal environments, may therefore improve performance by integrating high-performance work practices with initiatives that enhance strategic flexibility and foster effective professional and organizational networks.

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