Role of High ? Performance Work Practices on Performance in Pharmaceutical business in Thailand

Abstract

Natnaporn Aeknarajindawat, Nattachai Aeknarajindawat, Damkerng Aswasuntrangkul

The study analyses the relationship between various high performance work practices (HPWPs) and firm performance with the mediating role of innovative strategy employed by the upper echelon in the context of pharmacy business of Thailand. Owing to the prominence of strategic human resource practices in the growing economy of Thailand, the study serves the purpose to find those SHRM practices which boosts the organizational performance. The practices chosen for the research includes: training (TR), participation (PR), job definition (JD), performance appraisal (PA) and internal career opportunities (IC). The respondents of the study were the employees of the pharmaceutical firms who were engaged in strategy formulation and implementation. Additionally, survey questionnaire technique was utilized for data collection from the respondents who were selected through random sampling technique. The findings of the study showed participation of the employees in decision making i.e. making them autonomous to some extent contributes largely towards innovative strategic management. Likewise, job definition and performance appraisal also have the same relationship with the mediator. In addition to that, the link between HPWPs and firm performance was strengthened by the mediator in case of participation, job definition and performance appraisal. Lastly, the study enlightens the management to employ only those SHRM practices which have the most effective impact on firm performance.