Abstract

The primary purpose of this study was to examine the relationship between high-performance work practices, organizational innovation and organizational performance in the Jordanian service sector. The objective was to test the ability of high-performance work practices to account for variance in organizational innovation and subsequent organizational performance, and to examine the role of
organizational innovation as a mediator between high-performance work practices and organizational performance. A purposive sample of 170 employees was chosen from the service sector during the year of 2009. Valid and reliable measures were chosen for the study based on established research. Rigorous translation and standardization procedures were followed to eliminate any cultural bias. Results showed that high-performance work practices significantly predicted organizational innovation, and organizational innovation, in turn, significantly predicted organizational performance. The study ended by a conclusion that organizational innovation mediates the relationship between high performance work practices and organizational performance.

Key words: High-performance work practices, innovation, organizational performance, service sector, Jordan.