The mediating role of HR practices to enhance the innovative capabilities of SMEs
Article Sidebar
Published:
Feb 28, 2024
Keywords:
Human Resources Practice, Innovative Capability, Organizational Culture, SME
Section
Economy
Statistics Article
Article View : 70 Times
Main Article Content
Abstract
This research aims to determine the influence of organizational culture on innovative capabilities with human resource practices as a mediator. This quantitative descriptive research took the population of SME employees in Kebumen with the criteria of being a medium-sized business.Usually research on HR practices is carried out in large companies, but this research was carried out in SMEs that manage a minimum of 6-19 employees. The research results show that organizational culture does not influence innovative ability. However, HR practices that use the AMO concept have an impact on innovative capabilities. HR practices mediate the influence of organizational culture on innovative capabilities. This shows that through HR practices characterized by ability, motivation and opportunity, innovative capabilities can be increased. SME owners can benefit from good HR practice activities in their organization.
Downloads
Download data is not yet available.
Article Details
How to Cite
Azizah, S. N. . and Evelyna, F. . (2024) “The mediating role of HR practices to enhance the innovative capabilities of SMEs”, Jurnal Mantik, 7(4), pp. 2902-2912. doi: 10.35335/mantik.v7i4.4551.
References
Arvanitis, S., Seliger, F., & Stucki, T. (2016). The relative importance of human resource management practices for innovation. Economics of Innovation and New Technology , 25 (8), 769–800.
Batt, R., & Colvin, A. J. S. (2011). An employment systems approach to turnover: Human resource practices, quits, dismissals, and performance. Academy of Management Journal , 54 (4), 695–717.
Becker, B. E., & Huselid, M. A. (2006). Strategic human resources management: where do we go from here? Journal of Management , 32 (6), 898–925.
Boon, C., Den Hartog, D.N., & Lepak, D.P. (2019). A systematic review of human resource management systems and their measurement. Journal of Management , 45 (6), 2498–2537.
Bos-Nehles, A.C., & Veenendaal, A.R. (2019). Perceptions of HR practices and innovative work behavior: the moderating effect of an innovative climate. The International Journal of Human Resource Management , 30 (18), 2661–2683.
Bos-Nehles, A., Renkema, M., & Janssen, M. (2017). HRM and innovative work behavior: A systematic literature review. Personnel Review , 46 (7), 1228–1253.
Botelho, C. (2020). The influence of organizational culture and HRM on building innovative capability. International Journal of Productivity and Performance Management , 69 (7), 1373–1393.
Boyce, AS, Nieminen, LRG, Gillespie, MA, Ryan, AM, & Denison, DR (2015). Which comes first, organizational culture or performance? A longitudinal study of causal priorities with automobile dealerships. Journal of Organizational Behavior , 36 (3), 339–359.
Büschgens, T., Bausch, A., & Balkin, D. B. (2013). Organizational culture and innovation: A meta?analytic review. Journal of Product Innovation Management , 30 (4), 763–781.
Bysted, R., & Jespersen, K. R. (2014). Exploring managerial mechanisms that influence innovative work behavior: Comparing private and public employees. Public Management Review , 16 (2), 217–241.
Cabello-Medina, C., López-Cabrales, Á., & Valle-Cabrera, R. (2011). Leveraging the innovative performance of human capital through HRM and social capital in Spanish firms. The International Journal of Human Resource Management , 22 (04), 807–828.
Cameron, K.S., Quinn, R.E., DeGraff, J., & Thakor, A.V. (2022). Competing values leadership . Edward Elgar Publishing.
Chowhan, J. (2016). Unpacking the black box: understanding the relationship between strategy, HRM practices, innovation and organizational performance. Human Resource Management Journal , 26 (2), 112–133.
Colakoglu, S.S., Erhardt, N., Pougnet-Rozan, S., & Martin-Rios, C. (2019). Reviewing creativity and innovation research through the strategic HRM lens. In Research in personnel and human resources management (pp. 227–271). Emerald Publishing Limited.
Combs, J., Liu, Y., Hall, A., & Ketchen, D. (2006). How much do high?performance work practices matter? A meta?analysis of their effects on organizational performance. Personnel Psychology , 59 (3), 501–528.
Darwish, T. K., Singh, S., & Wood, G. (2016). The impact of human resource practices on actual and perceived organizational performance in a Middle Eastern emerging market. Human Resource Management , 55 (2), 261–281.
Den Hartog, D. N., & Verburg, R. M. (2004). High performance work systems, organizational culture and firm effectiveness. Human Resource Management Journal , 14 (1), 55–78.
Denison, D., Hooijberg, R., Lane, N., & Lief, C. (2012). Leading culture change in global organizations: Aligning culture and strategy . John Wiley & Sons.
Engelsberger, A., Halvorsen, B., Cavanagh, J., & Bartram, T. (2022). Human resources management and open innovation: The role of open innovation mindset. Asia Pacific Journal of Human Resources , 60 (1), 194–215.
Ferris, G.R., Arthur, M.M., Berkson, H.M., Kaplan, D.M., Harrell-Cook, G., & Frink, D.D. (1998). Toward a social context theory of the human resource management-organization effectiveness relationship. Human Resource Management Review , 8 (3), 235–264.
Foss, N.J., Laursen, K., & Pedersen, T. (2011). Linking customer interaction and innovation: The mediating role of new organizational practices. Organization Science , 22 (4), 980–999.
Galbraith, J.R. (1982). Designing the innovative organization. Organizational Dynamics , 10 (3), 5–25.
Giorgi, S., Lockwood, C., & Glynn, M. A. (2015). The many faces of culture: Making sense of 30 years of research on culture in organization studies. The Academy of Management Annals , 9 (1), 1–54.
Grieshaber, S. (2020). Equity and research design. In Doing early childhood research (pp. 177–191). Routledge.
Hamel, G. (2012). First, let's fire all the managers (how a company can operate without managers). Human Resource Management International Digest , 20 (4).
Heavey, A. L., Holwerda, J. A., & Hausknecht, J. P. (2013). Causes and consequences of collective turnover: a meta-analytic review. Journal of Applied Psychology , 98 (3), 412.
Holbeche, L. (2015). The Agile Organization: How to build an innovative, sustainable and resilient business . Kogan Page Publishers.
Hult, G. T. M., Hurley, R. F., & Knight, G. A. (2004). Innovativeness: Its antecedents and impact on business performance. Industrial Marketing Management , 33 (5), 429–438.
Huselid, M.A. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal , 38 (3), 635–672.
Jackson, T. (2014). Cross-cultural management from the South: What differences global dynamics make. In International Journal of Cross Cultural Management (Vol. 14, Issue 1, pp. 3–5). Sage Publications Sage UK: London, England.
Jiang, K., Lepak, D. P., Hu, J., & Baer, J. C. (2012). How does human resource management influence organizational outcomes? A meta-analytic investigation of mediating mechanisms. Academy of Management Journal , 55 (6), 1264–1294.
Khazanchi, S., Lewis, M. W., & Boyer, K. K. (2007). Innovation-supportive culture: The impact of organizational values on process innovation. Journal of Operations Management , 25 (4), 871–884.
Kim, S., Su, Z., & Wright, P. M. (2018). The “HR–line?connecting HRM system” and its effects on employee turnover. Human Resource Management , 57 (5), 1219–1231.
Kleemann, F., Voß, G. G., & Rieder, K. (2008). Un(der)paid Innovators: The Commercial Utilization of Consumer Work through Crowdsourcing. Science, Technology & Innovation Studies , 4 (1), PP. 5-26.
Kosiorek, D., & Szczepa?ska, K. (2016). Relationships between organizational culture and human resource management. Jagiellonian Journal of Management , 2 (Number 3), 205–215.
Lau, C., & Ngo, H. (2004). The HR system, organizational culture, and product innovation. International Business Review , 13 (6), 685–703.
LEGGE, K. (2005). Human Resources. The Oxford Handbook of Work and Organization , 220.
Lepak, D. P., Liao, H., Chung, Y., & Harden, E. E. (2006). A conceptual review of human resource management systems in strategic human resource management research. Research in Personnel and Human Resources Management , 217–271.
Liu, Y., L. Cooper, C., & Y. Tarba, S. (2019). Resilience, wellbeing and HRM: A multidisciplinary perspective. In The International Journal of Human Resource Management (Vol. 30, Issue 8, pp. 1227–1238). Taylor & Francis.
Mathur, A. K. (2015). Relationship between Organizational Culture and HR Practices: An Empirical Evidence from Indian Tourism Industry. International Journal of Research in Organizational Behavior and Human Resource Management , 3 (4), 64–79.
Matthew, A. (2014). Human Resource Management: The Enabler of Innovation in Organizations. BVIMR Management Edge , 7 (1).
McLean, L.D. (2005). Organizational culture's influence on creativity and innovation: A review of the literature and implications for human resource development. Advances in Developing Human Resources , 7 (2), 226–246.
Naranjo-Valencia, J. C., Jiménez-Jiménez, D., & Sanz-Valle, R. (2016). Studying the links between organizational culture, innovation, and performance in Spanish companies. Revista Latinoamericana de Psicología , 48 (1), 30–41.
Papalexandris, N., & Panayotopoulou, L. (2004). Exploring the mutual interaction of societal culture and human resource management practices: Evidence from 19 countries. Employee Relations , 26 (5), 495–509.
Pfeffer, J. (1998). The human equation: Building profits by putting people first . Harvard Business Press.
Posthuma, R.A., Campion, M.C., Masimova, M., & Campion, M.A. (2013). A high performance work practices taxonomy: Integrating the literature and directing future research. Journal of Management , 39 (5), 1184–1220.
Sackmann, S. A. (2011). Culture and performance. The Handbook of Organizational Culture and Climate , 2 , 188–224.
Schneider, B., Ehrhart, M. G., & Macey, W. H. (2013). Organizational climate and culture. Annual Review of Psychology , 64 , 361–388.
Seeck, H., & Diehl, M.-R. (2017). A literature review on HRM and innovation–taking stock and future directions. The International Journal of Human Resource Management , 28 (6), 913–944.
Sparrow, P. R., & Makram, H. (2015). What is the value of talent management? Building value-driven processes within a talent management architecture. Human Resource Management Review , 25 (3), 249–263.
Stone-Romero, E.F., & Rosopa, P.J. (2008). The relative validity of inferences about mediation as a function of research design characteristics. Organizational Research Methods , 11 (2), 326–352.
Wei, L.-Q., Liu, J., & Herndon, N. C. (2011). SHRM and product innovation: Testing the moderating effects of organizational culture and structure in Chinese firms. The International Journal of Human Resource Management , 22 (01), 19–33.
Wright, P. M., & Ulrich, M. D. (2017). A road well traveled: The past, present, and future journey of strategic human resource management. Annual Review of Organizational Psychology and Organizational Behavior , 4 , 45–65.
Zheng, J., Wu, G., Xie, H., & Li, H. (2019). Leadership, organizational culture, and innovative behavior in construction projects: The perspective of behavior-value congruence. International Journal of Managing Projects in Business , 12 (4), 888–918.
Zheng, W. (2010). A social capital perspective of innovation from individuals to nations: where is empirical literature directing us? International Journal of Management Reviews , 12 (2), 151–183.
Batt, R., & Colvin, A. J. S. (2011). An employment systems approach to turnover: Human resource practices, quits, dismissals, and performance. Academy of Management Journal , 54 (4), 695–717.
Becker, B. E., & Huselid, M. A. (2006). Strategic human resources management: where do we go from here? Journal of Management , 32 (6), 898–925.
Boon, C., Den Hartog, D.N., & Lepak, D.P. (2019). A systematic review of human resource management systems and their measurement. Journal of Management , 45 (6), 2498–2537.
Bos-Nehles, A.C., & Veenendaal, A.R. (2019). Perceptions of HR practices and innovative work behavior: the moderating effect of an innovative climate. The International Journal of Human Resource Management , 30 (18), 2661–2683.
Bos-Nehles, A., Renkema, M., & Janssen, M. (2017). HRM and innovative work behavior: A systematic literature review. Personnel Review , 46 (7), 1228–1253.
Botelho, C. (2020). The influence of organizational culture and HRM on building innovative capability. International Journal of Productivity and Performance Management , 69 (7), 1373–1393.
Boyce, AS, Nieminen, LRG, Gillespie, MA, Ryan, AM, & Denison, DR (2015). Which comes first, organizational culture or performance? A longitudinal study of causal priorities with automobile dealerships. Journal of Organizational Behavior , 36 (3), 339–359.
Büschgens, T., Bausch, A., & Balkin, D. B. (2013). Organizational culture and innovation: A meta?analytic review. Journal of Product Innovation Management , 30 (4), 763–781.
Bysted, R., & Jespersen, K. R. (2014). Exploring managerial mechanisms that influence innovative work behavior: Comparing private and public employees. Public Management Review , 16 (2), 217–241.
Cabello-Medina, C., López-Cabrales, Á., & Valle-Cabrera, R. (2011). Leveraging the innovative performance of human capital through HRM and social capital in Spanish firms. The International Journal of Human Resource Management , 22 (04), 807–828.
Cameron, K.S., Quinn, R.E., DeGraff, J., & Thakor, A.V. (2022). Competing values leadership . Edward Elgar Publishing.
Chowhan, J. (2016). Unpacking the black box: understanding the relationship between strategy, HRM practices, innovation and organizational performance. Human Resource Management Journal , 26 (2), 112–133.
Colakoglu, S.S., Erhardt, N., Pougnet-Rozan, S., & Martin-Rios, C. (2019). Reviewing creativity and innovation research through the strategic HRM lens. In Research in personnel and human resources management (pp. 227–271). Emerald Publishing Limited.
Combs, J., Liu, Y., Hall, A., & Ketchen, D. (2006). How much do high?performance work practices matter? A meta?analysis of their effects on organizational performance. Personnel Psychology , 59 (3), 501–528.
Darwish, T. K., Singh, S., & Wood, G. (2016). The impact of human resource practices on actual and perceived organizational performance in a Middle Eastern emerging market. Human Resource Management , 55 (2), 261–281.
Den Hartog, D. N., & Verburg, R. M. (2004). High performance work systems, organizational culture and firm effectiveness. Human Resource Management Journal , 14 (1), 55–78.
Denison, D., Hooijberg, R., Lane, N., & Lief, C. (2012). Leading culture change in global organizations: Aligning culture and strategy . John Wiley & Sons.
Engelsberger, A., Halvorsen, B., Cavanagh, J., & Bartram, T. (2022). Human resources management and open innovation: The role of open innovation mindset. Asia Pacific Journal of Human Resources , 60 (1), 194–215.
Ferris, G.R., Arthur, M.M., Berkson, H.M., Kaplan, D.M., Harrell-Cook, G., & Frink, D.D. (1998). Toward a social context theory of the human resource management-organization effectiveness relationship. Human Resource Management Review , 8 (3), 235–264.
Foss, N.J., Laursen, K., & Pedersen, T. (2011). Linking customer interaction and innovation: The mediating role of new organizational practices. Organization Science , 22 (4), 980–999.
Galbraith, J.R. (1982). Designing the innovative organization. Organizational Dynamics , 10 (3), 5–25.
Giorgi, S., Lockwood, C., & Glynn, M. A. (2015). The many faces of culture: Making sense of 30 years of research on culture in organization studies. The Academy of Management Annals , 9 (1), 1–54.
Grieshaber, S. (2020). Equity and research design. In Doing early childhood research (pp. 177–191). Routledge.
Hamel, G. (2012). First, let's fire all the managers (how a company can operate without managers). Human Resource Management International Digest , 20 (4).
Heavey, A. L., Holwerda, J. A., & Hausknecht, J. P. (2013). Causes and consequences of collective turnover: a meta-analytic review. Journal of Applied Psychology , 98 (3), 412.
Holbeche, L. (2015). The Agile Organization: How to build an innovative, sustainable and resilient business . Kogan Page Publishers.
Hult, G. T. M., Hurley, R. F., & Knight, G. A. (2004). Innovativeness: Its antecedents and impact on business performance. Industrial Marketing Management , 33 (5), 429–438.
Huselid, M.A. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal , 38 (3), 635–672.
Jackson, T. (2014). Cross-cultural management from the South: What differences global dynamics make. In International Journal of Cross Cultural Management (Vol. 14, Issue 1, pp. 3–5). Sage Publications Sage UK: London, England.
Jiang, K., Lepak, D. P., Hu, J., & Baer, J. C. (2012). How does human resource management influence organizational outcomes? A meta-analytic investigation of mediating mechanisms. Academy of Management Journal , 55 (6), 1264–1294.
Khazanchi, S., Lewis, M. W., & Boyer, K. K. (2007). Innovation-supportive culture: The impact of organizational values on process innovation. Journal of Operations Management , 25 (4), 871–884.
Kim, S., Su, Z., & Wright, P. M. (2018). The “HR–line?connecting HRM system” and its effects on employee turnover. Human Resource Management , 57 (5), 1219–1231.
Kleemann, F., Voß, G. G., & Rieder, K. (2008). Un(der)paid Innovators: The Commercial Utilization of Consumer Work through Crowdsourcing. Science, Technology & Innovation Studies , 4 (1), PP. 5-26.
Kosiorek, D., & Szczepa?ska, K. (2016). Relationships between organizational culture and human resource management. Jagiellonian Journal of Management , 2 (Number 3), 205–215.
Lau, C., & Ngo, H. (2004). The HR system, organizational culture, and product innovation. International Business Review , 13 (6), 685–703.
LEGGE, K. (2005). Human Resources. The Oxford Handbook of Work and Organization , 220.
Lepak, D. P., Liao, H., Chung, Y., & Harden, E. E. (2006). A conceptual review of human resource management systems in strategic human resource management research. Research in Personnel and Human Resources Management , 217–271.
Liu, Y., L. Cooper, C., & Y. Tarba, S. (2019). Resilience, wellbeing and HRM: A multidisciplinary perspective. In The International Journal of Human Resource Management (Vol. 30, Issue 8, pp. 1227–1238). Taylor & Francis.
Mathur, A. K. (2015). Relationship between Organizational Culture and HR Practices: An Empirical Evidence from Indian Tourism Industry. International Journal of Research in Organizational Behavior and Human Resource Management , 3 (4), 64–79.
Matthew, A. (2014). Human Resource Management: The Enabler of Innovation in Organizations. BVIMR Management Edge , 7 (1).
McLean, L.D. (2005). Organizational culture's influence on creativity and innovation: A review of the literature and implications for human resource development. Advances in Developing Human Resources , 7 (2), 226–246.
Naranjo-Valencia, J. C., Jiménez-Jiménez, D., & Sanz-Valle, R. (2016). Studying the links between organizational culture, innovation, and performance in Spanish companies. Revista Latinoamericana de Psicología , 48 (1), 30–41.
Papalexandris, N., & Panayotopoulou, L. (2004). Exploring the mutual interaction of societal culture and human resource management practices: Evidence from 19 countries. Employee Relations , 26 (5), 495–509.
Pfeffer, J. (1998). The human equation: Building profits by putting people first . Harvard Business Press.
Posthuma, R.A., Campion, M.C., Masimova, M., & Campion, M.A. (2013). A high performance work practices taxonomy: Integrating the literature and directing future research. Journal of Management , 39 (5), 1184–1220.
Sackmann, S. A. (2011). Culture and performance. The Handbook of Organizational Culture and Climate , 2 , 188–224.
Schneider, B., Ehrhart, M. G., & Macey, W. H. (2013). Organizational climate and culture. Annual Review of Psychology , 64 , 361–388.
Seeck, H., & Diehl, M.-R. (2017). A literature review on HRM and innovation–taking stock and future directions. The International Journal of Human Resource Management , 28 (6), 913–944.
Sparrow, P. R., & Makram, H. (2015). What is the value of talent management? Building value-driven processes within a talent management architecture. Human Resource Management Review , 25 (3), 249–263.
Stone-Romero, E.F., & Rosopa, P.J. (2008). The relative validity of inferences about mediation as a function of research design characteristics. Organizational Research Methods , 11 (2), 326–352.
Wei, L.-Q., Liu, J., & Herndon, N. C. (2011). SHRM and product innovation: Testing the moderating effects of organizational culture and structure in Chinese firms. The International Journal of Human Resource Management , 22 (01), 19–33.
Wright, P. M., & Ulrich, M. D. (2017). A road well traveled: The past, present, and future journey of strategic human resource management. Annual Review of Organizational Psychology and Organizational Behavior , 4 , 45–65.
Zheng, J., Wu, G., Xie, H., & Li, H. (2019). Leadership, organizational culture, and innovative behavior in construction projects: The perspective of behavior-value congruence. International Journal of Managing Projects in Business , 12 (4), 888–918.
Zheng, W. (2010). A social capital perspective of innovation from individuals to nations: where is empirical literature directing us? International Journal of Management Reviews , 12 (2), 151–183.
Copyright and Licensing
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.