Leveraging human assets for MNCs performance: the role of management development, human resource system and employee engagement

This study aims to test the effect of each dimension of Management Development Index, human resource system (HRS) and employee engagement (EE) on firm performance. Additionally, the study attempts to establish if EE is a missing link in the HRS-firm performance relationship. Using disproportionate stratified random sampling, data were collected from a sample of managerial staff of 10 multinational corporations to test the hypotheses. A two-stage structural equation modeling technique was used to test the hypothesized relationships among the constructs. The findings indicate that management development and HRS are associated with firm performance. The study results further support EE as a mediator in the HRS-firm performance relationship, albeit partially.