Human resource practices and organizational innovation capability: role of knowledge management

Abstract

Purpose The purpose of this paper is to probe and explore the mediation role of knowledge management (KM), in the relationship between human resource (HR) practices and organizational innovation capability. Design/methodology/approach The investigation is carried out by using a stratified-multi-stage sampling technique of 120-sample size. The data is amassed by both male and female employees working in the service sectors. A structural equation modelling is applied, and three methods are implemented for mediation analysis. Findings The findings suggest that the mediation role of KM is statistically significant, among the association of HR practices and organizational innovation capability. The fact that the mediation role of KM is established both for male and female employees is also noteworthy. Practical implications It can be possible to enhance the organizational innovation capability, if the HR practices are instigated by the HR managers effectively. Through HR practices the knowledge can be administrated and shared effectively that will aid in attaining organizational innovation, as well as competitive advantages. Originality/value The developing countries have opted for solutions such as empowering employees in decision-making to maximize innovation. Promoting KM and intellectual capabilities are now among the core parts of the HR policies for developing countries. Therefore, this paper will help in bringing awareness amid developing countries, Pakistan, in particular, to include KM and intellectual capabilities for increasing organizational capabilities.