Determinants of Radical and Incremental Innovation: The Roles of Human Resource Management Practices, Knowledge Sharing, and Market Turbulence

Abstract

Aim/Purpose: Given the increasingly important role of knowledge and human resources for firms in developing and emerging countries to pursue innovation, this paper aims to study and explore the potential intermediating roles of knowledge donation and collection in linking high-involvement human resource management (HRM) practice and innovation capability. The paper also explores possible moderators of market turbulence in fostering the influences of knowledge-sharing (KS) behaviors on innovation competence in terms of incremental and radical innovation. Background: The fitness of HRM practice is critical for organizations to foster knowledge capital and internal resources for improving innovation and sustaining competitive advantage. Methodology: The study sample is 309 respondents and Structural Equation Model (SEM) was used for the analysis of the data obtained through a questionnaire survey with the aid of AMOS version 22. Contribution: This paper increases the understanding of the precursor role of high-involvement HRM practices, intermediating mechanism of KS activities, and the regulating influence of market turbulence in predicting and fostering innovation capability, thereby pushing forward the theory of HRM and innovation management. Findings: The empirical findings support the proposed hypotheses relating to the intermediating role of KS in the HRM practices-innovation relationship. It spotlights the crucial character of market turbulence in driving the domination of knowledge-sharing behaviors on incremental innovation. Recommendations for Practitioners: The proposed research model can be applied by leaders and directors to foster their organizational innovation competence. Recommendation for Researchers: Researchers are recommended to explore the influence of different models of HRM practices on innovation to identify the most effective pathway leading to innovation for firms in developing and emerging nations. Impact on Society: This paper provides valuable initiatives for firms in developing and emerging markets on how to leverage the strategic and internal resources of an organization for enhancing innovation. Future Research: Future studies should investigate the influence of HRM practices and knowledge resources to promote frugal innovation models for dealing with resource scarcity.