| Innovation is critical for firms to achieve sustainable competitive advantage, and knowledge is central to innovation activities. The challenge lies in configuring how knowledge, and human resources which are the storehouses of knowledge, together with organizational processes, drive a firm's innovation agenda. There is a significant research gap in identifying the elements and mediating processes in the link between human resource management (HRM) and innovation, as well as the relationship between HRM and knowledge management in the context of innovation. Hence, the research question is "how can HRM in firms be utilized in building organizational innovative capability?" and the aim of the study is to construct and test a theoretical framework linking HRM and innovative capability.;The underlying theory for the study is the resource-based theory. In the study's theoretical framework, relationships are drawn between four constructs, namely HRM practices, knowledge management (KM) capacity, intellectual capital (IC), and innovative capability. HRM practices, KM capacity, and IC are all hypothesized to have direct impacts on the dependent variable, which is innovative capability. In addition, it is also hypothesized that KM capacity and IC may function as potential mediators in the relationship between HRM practices and innovative capability. HRM practices are represented by five HRM practice bundles, namely entrepreneurial, collaborative, egalitarian, documentation, and technological HRM practices. They are comprised of complementary and innovation-centered HRM practices geared towards enhancing organizational knowledge flow and innovation. |
