Do high-commitment work systems engage employees? Mediating role of psychological capital

Purpose Although managers and academicians have recognised the importance of high-commitment work systems (HCWS), work engagement and psychological capital (PsyCap) in service firms, many questions remain unanswered. This study aims to fill the gaps in the area of work engagement by considering the relationships among HCWS, PsyCap and work engagement. In this cross-sectional study, the author drew on the social exchange theory to analyse these relationships. Design/methodology/approach Cross-sectional data from 309 employees from India's services sector was collected to investigate HCWS and work engagement associations. The data were analysed by structural equation modelling. Findings The study findings integrate the existing literature on human resource (HR) systems and positive psychology by identifying the critical role of PsyCap in passing the positive effects of HCWS to engage employees in their work. Further, it supports the assumption that PsyCap is formed primarily based on organisational practices, thereby addressing the paucity of research that examined the antecedents of PsyCap. Practical implications Owing to study findings, service firms are encouraged to carry out human resource development intervention(s) to make their employees psychologically capable. Since PsyCap is a state-like construct, it can be developed among individuals. Thus, managers can develop their employees' PsyCap through various training interventions. Originality/value The mediating role of PsyCap in the HCWS and work engagement in India's service industries settings was tested. The present study's findings contribute to the theory of strategic human resource management by explaining how HCWS can help employees engage better in their work.