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Stimulating product and process innovation through HRM practices: the mediating effect of knowledge management capability

Son Thanh Than (Hanoi University of Industry, Hanoi, Vietnam)
Phong Ba Le (Hanoi University of Industry, Hanoi, Vietnam) (Faculty of Business Administration, Hunan University, Changsha, China)
Thai Phong Le (Faculty of Business Administration, Foreign Trade University, Hanoi, Vietnam)
Dung Thi Nguyet Nguyen (Hanoi University of Industry, Hanoi, Vietnam)

Evidence-based HRM

ISSN: 2049-3983

Article publication date: 6 July 2022

Issue publication date: 27 February 2023

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Abstract

Purpose

This study aims to investigate the influence of human resource management (HRM) practices on two aspects of innovation capability namely product and process innovation. It also attempts to clarify the HRM-innovation relationship by examining the mediating roles of specific components of knowledge management capability (KMC) namely knowledge acquisition, knowledge sharing and knowledge application.

Design/methodology/approach

This research used the quantitative method and structural equation modeling (SEM) approach to examine hypotheses with data obtained by survey from 325 participants in 98 Vietnamese firms.

Findings

The empirical findings show the evidence on the mediating roles of components of KMC in the HRM-innovation relationship and indicate that HRM practices have a greater impact on product innovation compared to its effects on process innovation. In contrast, all three components of the KMC produce larger impacts on process innovation than on product innovation. In particular, it highlights the key role of knowledge sharing in predicting product and process innovation in comparison to the roles of knowledge acquisition and knowledge application.

Practical implications

CEOs/managers should practice and manage their human resource to foster organizational capability for product and process innovation directly or indirectly via enhancing aspects of KMC namely knowledge acquisition, sharing and application.

Originality/value

By investigating the mediating mechanisms of specific components of KMC, the paper has significantly contributed to advancing the body of knowledge of innovation theory and providing deeper insights on the correlation between HRM practices and aspects of innovation capability namely product and process innovation.

Keywords

Acknowledgements

This research is funded by Foreign Trade University under research program number FTURP01-2020-02.

Citation

Than, S.T., Le, P.B., Le, T.P. and Nguyen, D.T.N. (2023), "Stimulating product and process innovation through HRM practices: the mediating effect of knowledge management capability", Evidence-based HRM, Vol. 11 No. 1, pp. 85-102. https://doi.org/10.1108/EBHRM-04-2021-0068

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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