Impact of Knowledge-Based HRM Practices on Organizational Performance

Abstract

This paper examines the components of Intellectual Capital (IC) as mediating variables between knowledge-based Human Resource Management (HRM) practices and organizational performance. Therefore, integrating research channels in the field of human resource and organization performance. Factor analysis and path analysis have been performed to test the research model and finally parallel mediation effects of the mediators have been examined. Outcomes of the study showed that HRM practices lead to the creation of Intellectual Capital, and the relationship between HRM and performance is positively mediated by components of IC in context of Indian service sector. Additionally, in comparison, amongst the mediators, organizational capital is found to be the most contributing component followed by human and relational capital. The findings of this research will assist the HR managers and organizations in the composition and positioning of HRM practices and IC.