Applying knowledge-based human resource management to drive innovation: the roles of knowledge sharing and competitive intensity

Purpose Given the increasingly important role of knowledge capital on key outcomes and innovation capabilities of organizations, this paper aims to investigate the influences of knowledge-based human resource management (KHRM) practices on innovation capability of firms via mediating role of knowledge sharing (KS). This study also examines whether competitive intensity moderates the effects of KS behaviors on specific aspects of innovation capability, namely, product and process innovation. Design/methodology/approach This paper used structural equation modeling to examine the level of how KHRM practices and KS impact on two types of innovation capability, namely, product innovation and process innovation using data collected from 265 participants in 112 manufacturing and service firms in Vietnam. Findings The research findings confirm the mediating roles of KS behaviors between KHRM practices and two specific types of innovation. Besides, the paper first reveals the moderating role of competitive intensity in the relationships between KS and product innovation. The results underline the necessity of building a climate of KHRM practices to stimulate employees sharing knowledge, which, in turn, positively promotes innovation capabilities in an organization. Research limitations/implications Future research should investigate the impact of different forms of human resource management (HRM) practices on innovation via the mediating effects of certain aspects of KS to bring better understanding on the importance of HRM practices and knowledge resources in pursuing innovation competence. Practical implications This paper offers leaders a deeper understanding of potential effects of competitive intensity and environmental factors to promote innovation capabilities in their firms. Originality/value This paper has significant contributed to theoretical and practical initiatives on theory of HRM practices and knowledge management by showing different moderating and mediating mechanism thereby firms can follow to enhance innovation capability of firms in developing and emerging markets.