Strategic Human Resource Practices And Innovation Performance

In the field of human resource management, the research on the relationship between strategic human resource practices and organizational performance has been a hotspot and a difficult point. This study examines the role of knowledge management capacity in the relationship between strategic human resource practices and innovation performance from the knowledge-based view. The results prove that the use of strategic human resource practices positively explains the firm's innovation performance; however, knowledge management capacity acts as a mediator to attenuate these positive relationships. Thus, we demonstrate that knowledge management capacity is a mediating mechanism through which strategic human resource practices benefit innovation performance.This study uses regression analysis to test four hypotheses in a sample of 126 firms. The results indicate that strategic human resource practices including staffing, employee participation, and performance appraisal systems, and incentive-based compensation are positively related to knowledge management capacity (knowledge acquisition, knowledge sharing, knowledge application) which, in turn, has a positive effect on innovation performance (products innovation and process innovation). These findings provide evidence that knowledge management capacity plays a mediating role between strategic human resource practices and innovation performance. The viewpoints of this study highlight the crucial importance of the mediating role of knowledge management capacity when examining the relationship between strategic HR practices and innovation performance.To facilitate the link of strategic human resource practices and favorable innovation performance, managers first need to recognize the importance of knowledge management capacity. Then they should utilize strategic human resource practices to cultivate a better level of knowledge management capacity which in turn will result in favorable innovation outcomes. The findings of this study fill the gap in the literature that is lack of empirically examining the mediating roles of knowledge management in the relationships between strategic human resource practices and innovation performance.Finally, this study discusses managerial implications and highlights future research directions.