High Performance Work Systems for Service Quality: Boundary Conditions and Influence Processes

Drawing on agency theory and the resource-based view, this study examines the moderating effect of hotel ownership structure on the relationship between high-performance work systems for service quality (HPWS-SQs) and service performance as well as the curvilinear relationship between hotel service performance and hotel profitability. Results from surveys and archival data of 126 hotels showed that when hotels were owned and operated by brands, HPWS-SQs had a positive effect on service performance. Moderated mediation analyses showed that service performance as a mediator accounted for the moderating effect of ownership and management structure on the relationship between HPWS-SQs and hotel profitability. In addition, service performance demonstrated an inverted U-shaped relationship with hotel profitability. These findings advanced the understanding of the boundary conditions and influence processes of HPWS-SQs on financial performance in service settings. © 2016 Wiley Periodicals, Inc.