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1 – 1 of 1Karishma Trivedi and Kailash B.L. Srivastava
Innovation is critical for businesses to stay competitive in today's world, as it allows them to constantly look for new ways to differentiate their products or services from…
Abstract
Purpose
Innovation is critical for businesses to stay competitive in today's world, as it allows them to constantly look for new ways to differentiate their products or services from their competitors as well as improve cost-effectiveness. This study explore the role of strategic human resource practices in developing organizations' competitive capabilities-differentiation and cost-effectiveness, which, improves their innovation performance to create a competitive advantage.
Design/methodology/approach
The authors collected data from 387 employees from 25 knowledge-intensive information technology organizations in India through a questionnaire-based survey. After checking for biases, reliability and validity, the hypothesized relationships were tested by structural equational modeling using AMOS 26.
Findings
Strategic HR practices have a significant and positive effect on innovation performance and both competitive capabilities-differentiation and cost-effectiveness. While the differentiation capability had a strong positive effect on innovation performance, cost-effectiveness capability was not significantly related to innovation performance. The differentiation capability mediates the relationship between strategic HR practices and innovation performance link, whereas the cost-effectiveness capability did not have a mediating effect.
Practical implications
This study provides practical insights to HR and knowledge managers to focus on development of human capital and invest in hiring, training, development, strategic performance management practices to enhance employees' knowledge behaviors, which, stimulates innovation performance.
Originality/value
The paper adds to the strategic HRM paradigm by clarifying the underlying process of how strategic HR practices leads to higher innovation. It affirms the vitality of choosing appropriate competitive capabilities, and supporting organizational factor for business's success. It fills an important research gap by providing original empirical evidence from knowledge intensive information technology organizations in the emerging economy of India.
Details