The Role of Employee Ambidexterity in the Relationship Between High-involvement HR Practices and Employee Performance in the Indian Service Sector

Abstract

In an environment that is fast-moving and intensely competitive, the service sector requires a workforce that will be both efficient with existing competencies and effective in exploring new ways of doing work. With its foundations in social exchange theory, this article examines the link between high-involvement HR practices (HIHRP)—conceptualised under the ability–motivation–opportunity (AMO) model—and employee performance. Additionally, this article attempts to add complexity to this relationship by explicating the mediating roles of employee ambidexterity. The authors engaged in a quantitative study through the use of a structured questionnaire designed to gather survey data from 424 employees in the service sector workforce located in India. The authors employed the partial least-squares structural equation modelling (PLS-SEM) technique to evaluate the associations among constructs. The finding reveals that HIHRP and employee ambidexterity are both positively connected to employee performance in the service sector and that employee ambidexterity acts as a mediating variable between HIHRP and employee performance. In sum, the research study contributes a valuable insight into the existing literature related to strategic HRM. The authors also provide theoretical and practical implications for both academia and practice.