Chapter 9 Can HPWS and Unions Work Together to Reduce Employee Turnover Intention in Foreign MNCs in China?

Guided by social exchange theory and signaling theory, this chapter investigates the relationship between individual perceptions of high-performance work systems (HPWS), union instrumentality, and employees’ turnover intention. The results obtained from a multilevel and multisource sample of more than 1,300 employees in 37 multinational corporation based in China show that, in contrast to our hypothesis, union instrumentality is not directly related to turnover intention; rather, the results from the post hoc mediation analysis show that union instrumentality is indirectly and negatively related to turnover intention through affective organizational commitment. Consistent with our hypothesis, the results of our analysis show that union instrumentality serves as an important contingent factor in the relationship between HPWS and employee turnover intention. The relationship between HPWS and turnover intention becomes positive when employee union instrumentality is low.