Corporate Governance and High Performance Work System

Abstract

This article examined the effects of corporate governance on the utilization of high performance work system (HPWS) and the magnitude of changes in HPWS practices over time. Based on extant research on HWPS and corporate governance, we derived three hypotheses. First, family firms are likely to utilize more HPWS practices than firms governed by professional managers are. Second, family firms are likely to utilize fewer HPWS practices than firms governed by professional managers. Third, firms governed by professional managers are more likely to change their HPWS practices than family firms. To test the hypotheses, we analyzed panel data composed of 317 firms, which were provided by Korea Research Institute for Vocational Education and Training. Panel regression results showed that the second and the third hypotheses were supported. Implications and directions for future research were discussed.