In this study, we explore the potential downside of the ‘high-performance’paradigm by examining the curvilinear relationship between high-performance work systems (HPWS) and organizational performance and the moderating effects of the industry type. Using data from Taiwanese manufacturing ﬁrms, we ﬁnd an inverted-U pattern between HPWS and organizational performance in high-technology ﬁrms (N = 74), and a linear relationship in traditional manufacturing ﬁrms (N = 86). These ﬁndings are consistent with the viewpoint of diminishing returns of HPWS and the contingency perspective. Theoretical and practical implications of our ﬁndings are also discussed.
British Journal of Industrial Relations, 50(4), 825