Background: Digitalization has reshaped modern workplaces by introducing new ways of working, while also raising concerns about employees' skills, communication, and ability to adapt to technology, all of which impact effective collaboration. The key challenge now is how to manage and support employees effectively within this constantly evolving environment. High-Performance Work Systems (HPWS) are designed to help organizations leverage employees’ potential through key mechanisms such as Human Capital, Relational Coordination, and Commitment & Engagement. However, factors such as management style, national culture, organizational culture influence how employees perceive and respond to HPWS practices. In a digitalized environment, it is crucial to explore these contextual influences to better understand the role of HPWS in supporting effective employee collaboration.

Purpose: This study explores how employees perceive the role of contextual factors influencing the effectiveness of HPWS mechanisms in supporting collaboration in a digitalized work environment. The primary goal is to examine how the three core mechanisms of HPWS, namely Human Capital, Relational Coordination, and Commitment & Engagement, are shaped by contextual factors to capture their full effectiveness in digitally evolving environments. The study contributes to theory by integrating all three mechanisms and examining how contextual factors enable their functioning, an approach that is rarely taken in existing HPWS literature. ii Additionally, it offers insight into individual perceptions of collaboration, which are often overlooked in previous research. By conducting the study in the Nordic context, this research contributes to the ongoing discussion on the influence of national characteristics by examining how HPWS functions in a region marked by low power distance, high trust, and advanced digital maturity. From a practical perspective, this study offers concrete examples of HR practices that support collaboration in a digitalized setting, which can guide managers and organizations in tailoring HPWS initiatives to improve collaboration in cultural and organizational environments with similar traits.

Method: This study employed qualitative research with an inductive, exploratory approach. Data were collected through 20 semi-structured interviews with a representative sample of participants in three Nordic countries: Finland, Norway, and Sweden. Thematic analysis was used to identify patterns in how the employees perceive the contextual factors influencing the effectiveness of HPWS practices to support collaboration in digital work environments.

Conclusion: The findings showed that while all three HPWS mechanisms (Human Capital, Relational Coordination, and Commitment & Engagement) are important in digitalized work environments, their effectiveness is shaped by contextual factors such as managerial practices, organizational culture, and national norms. Human Capital and Relational Coordination directly supports collaboration, while Commitment & Engagement supports it indirectly. Contextual factors help these mechanisms emerge naturally, meaning HPWS can develop even without formal implementation. The study’s findings underscore the need to adapt HPWS practices to individual needs and contextual conditions, particularly in digital transitions.