This study argues that multinational corporations (MNCs) which implement high performance work system in their host country nationals may help their workers form relational psychological contracts with the MNC. Such practices can increase host country national work involvement and enhance their job performance. With survey data from 1084 host country nationals in 49 Taiwanese MNCs operating in China, this study uses structural equation modeling to examine the interdependent and simultaneous relationships between MNC implementation of high performance work system with host-country nationals, the formation of a relational psychological contract, work involvement, and host-country national job performance. Findings demonstrate that the relational psychological contract and work involvement are partial mediators in the relationship between high performance work system and job performance. The results show that MNCs can expect better job performance from host country nationals when implementing high performance work systems with these workers.
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