Stimulating product and process innovation through HRM practices: the mediating effect of knowledge management capability
| DOI | https://doi.org/10.1108/EBHRM-04-2021-0068 |
| Published date | 06 July 2022 |
| Date | 06 July 2022 |
| Pages | 85-102 |
| Subject Matter | HR & organizational behaviour,Global HRM |
| Author | Son Thanh Than,Phong Ba Le,Thai Phong Le,Dung Thi Nguyet Nguyen |
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 and
Faculty of Business Administration, Hunan University, Changsha, China
Thai Phong Le
Faculty of Business Administration, Foreign Trade University, Hanoi, Vietnam, and
Dung Thi Nguyet Nguyen
Hanoi University of Industry, Hanoi, Vietnam
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 innovationthan 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 HRM practices, Knowledge management capability, Product innovation, Process innovation,
Innovation capability
Paper type Research paper
Introduction
Today’s increasing competitive pressure has required firms to unendingly innovate their
products and services to meet the rapid changes of customer demands (Yang et al., 2018;Le
and Lei, 2019;Le et al., 2020). Innovation capability is widely accepted as the main driving
force for firms to attain competitive advantages and success (Zia, 2020;Lei et al., 2021). Prior
HRM practices
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This research is funded by Foreign Trade University under research program number FTURP01-2020-02.
The current issue and full text archive of this journal is available on Emerald Insight at:
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Received 19 April 2021
Revised 30 December 2021
29 April 2022
Accepted 20 June 2022
Evidence-based HRM: a Global
Forum for Empirical Scholarship
Vol. 11 No. 1, 2023
pp. 85-102
© Emerald Publishing Limited
2049-3983
DOI10.1108/EBHRM-04-2021-0068
studies indicated that firms with the higher degree of innovation capability allow them to
adapt better to the lack of certainty of both external and internal environment, take
advantage of strategic market opportunities and bring them the success before the swift
changes of technology, globalization and competitive intensity (Singh, 2018;Le and Lei, 2019;
Wang et al., 2020). However, it is not easy for firms to develop its innovation capability
properly due to lack of understanding on key antecedents and appropriate mechanism of
innovation (Waheed et al., 2019;Le, 2020;Lei et al., 2021). To fill these theoretical gaps, the
purpose of this study is to investigate the potential impacts of human resource management
(HRM) practices on aspects of innovation capability namely product and process innovation
via the mediating role of knowledge management capability (KMC) in organizations. This
study is expected to significantly expand the human resource theory and bring valuable
insight on the road leading to innovation capability by following reasons.
First, human resources are generally viewed as the valuable and core assets for firms to
create value and sustain competitive advantage in a rapidly changing environment (Lei et al.,
2021). HRM practices are the primary drive for firms to shape and develop employees’skills,
attitudes and behavior which help them to effectively perform their work, successfully
innovate and achieve organizational goals (Chen and Huang, 2009;Lei et al., 2021). Although
there is a broad acknowledgment on the importance of HRM practices towards the firm’s
outcomes such as flexibility, productivity and organizational performance, little empirical
research has tested the potential effects of HRM practices on innovation capability (Chen and
Huang, 2009;Waheed et al., 2019). In particular, Haneda and Ito (2018) indicated that
knowledge of the possible differential influences of HRM practices on the specific patterns of
innovation have not yet been sufficiently examined in previous works. Accordingly, this
paper attempts to explore and increase the understanding of the relationship between HRM
practices and two specific forms of innovation capability, namely product and process
innovation.
Second, in the era of knowledge-based economy, KMC plays an indispensable role in
stimulating innovation capability through diverse means like identifying knowledge gaps,
integrating both internal and external knowledge and making it more available and
accessible for innovation process (Du Plessis, 2007;Le and Lei, 2019;Nguyen et al., 2021).
However, the understanding on the relationship between KMC and specific aspects of
innovation capability is still limited and under-explored (Le et al., 2020;Lei et al., 2021).
Notably, Anderson et al. (2014) stressed the necessity of identifying the antecedents of specific
forms of innovation by posing a question: “What is the relationship between organizational
resources and different types of organizational innovation?”In the same vein, previous
studies argued that little to no research has examined the effects of specific components of
KMC on certain forms of innovation capability (Le and Lei, 2018;Nguyen et al., 2021). In other
words, further theoretical and practical evidence is required to detect and explain clearly the
correlation between KMC and specific aspects of innovation capability such as product and
process innovation.
Third, literature underlined the importance of excellent HRM practices in improving the
firms’capability of managing knowledge resource and innovation (Chen and Huang, 2009;
Tan and Nasurdin, 2011;Than et al., 2021). This implied that HRM practices enable firms to
enhance employees’capability of generating knowledge within their sphere of influence and
maximize the effects of shared knowledge for organizational innovation (Tan and Nasurdin,
2011). However, the understanding on the connection between HRM practices and specific
pattern of innovation via mediating role of KMC is still the “black box”and omitted by current
research works (Chen and Huang, 2009;Tan and Nasurdin, 2011;Than et al., 2021).
Especially, Lei et al. (2021) posed th e need for future research on advancing the
comprehension of how HRM practice connects with specific aspects of KMC to stimulate
innovation capability for firms. Hence, this study will make an effort to advance the
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