Knowledge as a key in the relationship between high-performance work systems and workforce productivity

Drawing on the knowledge-based view of the firm, we develop and test a theoretical model linking high-performance work systems (HPWS) and workforce productivity via employee exchange and combination of knowledge. A test of our model in a sample of junior enterprises in Germany supports the proposal that knowledge exchange and combination plays a mediating role. However, knowledge-management effectiveness interacts. That is, knowledge exchange and combination mediates the relationship between HPWS and workforce productivity only when knowledge-management is effective at medium and high levels, but not at low levels.