INNOVATIVE EMPLOYMENT PRACTICES AND EMPLOYEES’ PERFORMANCE: UNDERSTANDING MEDIATING EFFECT OF SELF-EFFICACY IN THE CONTEXT OF COLLECTIVIST ECONOMY

Abstract

Evidence of positive and insignificant correlation has characterized research on the relationship between human resource management (HRM) practices and employees’ performance in the last decades, but the notable difference lies in the contexts and designs employed by researchers. While it is obvious that most of these research studies took place in the developed economies, the focus of researchers on underpinning the relationship between HRM practices and performance has remained anecdotal in the developing countries, most especially in the collectivist economy context. Using data from a survey of 175 respondents in a university in Kenya, the study investigated the relationship between innovative employment practices and employees’ performance with self-efficacy as a potential mediator. Findings from the study showed a significant relationship between innovative employment practices and employees performance (R² = 94.38%, P<0.05), and the relationship is also mediated by construct of self-efficacy. The findings from this study support self-determination theory which explains that fulfilment and satisfaction of certain innate psychological needs will generate positive discretionary efforts, which in turn, result to positive outcomes. The practical implication of this study is that experience of positive innovative practices by employees in the organization will enhance self-efficacy which will, in turn, result to performance outcomes. The study employed a cross-sectional design and therefore has inability to establish a causal relationtionship. Therefore, subsequent studies investigating innovative employment practices and performance relationship need to focus on logitidunal design so as to determine causal relationship. Also, it is limited to an educational institution (university), therefore, its findings cannot be generalized across other sectors especially in a collectivist environment.