High performance work systems in corporate turnaround: a German case study

Purpose – This study aims to investigate the nexus of high‐performance work systems (HPWS) with corporate change that leads to enhanced performance. Design/methodology/approach – The paper uses a case study method and analyzes the impact of a HPWS, adopted at a German medical technology company, on corporate turnaround and performance outcomes. In the present study, conducting in‐depth interviews with the social partners of corporate change, the authors investigate how leadership, competition forces and employee relations interacted with a bundle of high‐performance work practices led the company to massive changes in production with noticeable performance outcomes. Findings – The analysis lends support to the HPWS approach that links certain high‐commitment work practices to corporate changes and enhanced performance outcomes such as rising employee productivity and sales over the last decade. Practical implications – The study pinpoints key factors that could optimally be used as a best practice framework for change management leading to corporate turnaround in a highly volatile world economy. Social implications – The HPWS approach, facilitating corporate turnaround, underlines the importance of social partnership for modern corporations to handle groundbreaking changes and survive the fierce competition in global markets. Originality/value – Using a case study method, the analysis lends some support to the HPWS perspective that links high‐commitment work practices to enhanced corporate performance.