HR Practices and Organizational Innovation: The Mediating Role of Knowledge Management Effectiveness

  • Muhammad Farooq Iqra University, Islamabad
  • Irfan Ullah Iqra University, Islamabad
  • Raja Mahzhar Hameed Iqra University, Islamabad


Organizational innovation has been recognized as an important instrument for organizations to compete in the competitive environment. Pakistan telecom sector strive to transform their business model from labour-intensive to knowledge-intensive, which intend to thrust themselves in higher value added activities such as, developing new products, processes, and services, to continual sustain the competitiveness. One of the means to increase the organizational innovation is through effective human resource management practices and effective knowledge management. This study examined the direct association between human resource management practices (performance appraisal, career management, training, reward system, recruitment and employee recognition) and organizational innovation. Moreover, it also observed the mediating role of knowledge management effectiveness on the direct relationship. Data was collected from a sample of 290 personnel of telecom sector of Pakistan. The regression results showed that human resource management practices generally had a positive impact on organizational innovation. Particularly, the results signify that training and employee recognition were positively related to three dimensions of organizational innovation. Performance appraisal also established to have a positive impact on administrative innovation. Additionally, this study also demonstrates that training, performance appraisal, and employee recognition were positively associated to knowledge management effectiveness.


Download data is not yet available.


AL-Hakim, L. A. & Hassan, S. (2011). The Role of Middle Managers in Knowledge. International Journal of Innovation, Management and Technology, 2(1), 86-94. Alshekaili, S. A. R. & Boerhannoeddin, A. (2011). Human Capital Approach towards Enhancing Innovation Performance in Omani Industrial Firms: The role of Knowledge Management. Progress in Business Innovation and Technology Management, 001, 23-33. Amidon, D. M. (2006). Innovation strategy for the knowledge economy: the ken awakening. New York: Reed Educational & Professional Publishing Ltd., 213-226. Anvari, R. & Amin, S. M. (2011). Strategic training practices and turnover intention: The mediating role of organizational commitment. International Journal Business and Management Studies, 3(2), 293-305. Baron, R. M. & Kenny, D. A. (1986), .The moderator-mediator variable distinction in social psychological research: Conceptual, strategic and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173-1182. Chen, C. J. & Huang, J. W. (2009) .Strategic human resource practices and innovation performance — the mediating role of knowledge management capacity. Journal of Business Research, 62(1), 104-114. Chew, C. H. (2000). Organizational cultural characteristics and innovation: A perspective from electrical and electronics industry in Penang. Unpublished M.B.A dissertation, Universiti Sains Malaysia, Penang, Malaysia.
Chuang, L. M. (2005). An empirical study of the construction of measuring model for organizational innovation in Taiwanese high-tech enterprises. The Journal of American Academy of Business, 9(2), 299-304. Cooper, C. L. (1998). The changing nature of work [1]. Community, Work & Family, 1(3), 313-317. Damanpour, F. & Gopalakrishnan, S. (2001), .The dynamics of the product and process innovations in organizations. Journal of Management Studies, 38(1), 45-65. Damanpour, F., Szabat, K. A. & Evan, W. M. (1989), .The relationship between types of innovation and organizational performance. Journal of Management Studies, 26(6), 587-601. Darroch, J. & McNaughton, R. (2002), .Examining the link between knowledge management practice and types of innovation. Journal of Intellectual Capital, 3(3), 210-222. Delery, J. E. & Doty, D. H. (1996), .Modes of theorizing in strategic human resource management: Tests of universalistic, contingency, and configurational performance predictions. Academy of Management Journal, 39(4), 802-835. Delise L. A., Gorman, C. A., Brooks, A. M., Rentsch J. R. & Steele-Johnson, D. (2010). The Effects of Team Training on Team Outcomes: A Meta-Analysis. Performance Improvement Quarterly, 22(4), 53-80. Feng-Chuan Liu, Cheng, k. l, Chao, H. M. & Tseng, H. M. (2012). Team Innovation Climate and Knowledge Sharing among Healthcare Mangers: Mediation effects of Altuistic Intentions. Chang Gung Med J., 35(5), 408-419. Gold, A. H., Malhortra, A. & Segras, A. H. (2001), .Knowledge management: An organizational capabilities perspective. Journal of Management Information Systems, 18(1), 185-214. Gupta, A. & Singhal, A. (1993), .Managing human resources for innovation and creativity. Research Technology Management, 36(3), 8-41. Hair, J. F., Black, Jr. W. C., Babin, B. J., Anderson, R. E. & Tatham, R. L. (2006). Multivariate Data Analysis, 6th, PEARSON Prentice Hall, USA. Harter, J. K., Schmidt, F. L. & Hayes, T. L. (2002), .Business-Unit-Level relationship between employee satisfaction, employee engagement, and business outcomes: A meta-analysis. Journal of Applied Psychology, 87(2), 268-279. Hausknecht, J. P., Rodda, J. & Howard, M. J. (2009). Targeted employee retention: Performance based and job-related differences in reported reasons for staying. Human Resource Management, 48(2), 269-288. Hislop, D. (2003). Linking human resource management and knowledge management via commitment: A review and research agenda. Employee relations, 25(2), 182-202. Hooper, D., Coughlin, J. & Mullen, M. R. (2008). Structural Equation Modeling: Guidelines for Determining Model Fit. Elect. J. Bus. Res. Methods, 6(1), 53 – 60. 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. Ismail, M. (2005). Pharmacokinetics of cefepime administered by iv and im routes to ewes. Journal of veterinary pharmacology and therapeutics, 28(6), 499-503. Jolibert, A. & Jourdan, P. (2006). Marketing Research - Méthodes De Recherche Et D’études En Marketing. Paris: Dunod. Jiménez-Jiménez, J. & Sanz-Valle, R. (2005). Innovation and human resource management fit: An empirical study. International Journal of Manpower, 26(4), 364-381. Kenny, D. A. (2003). Mediation. Available from Kraimer. (2011). Antecedents and outcomes of organizational support for development: The critical role of career opportunities. Journal of Applied Psychology, 96(3), 485-500. Laursen, K. & Foss, N. J. (2003). New human resource management practices, complementarities and the impact on innovation performance. Cambridge Journal of economics, 27(2), 243-263. Ling, T. C. & Nasurdin, A. Z. (2010). The influence of knowledge management effectiveness on administrative innovation among Malaysian manufacturing firms. Asian Academy of Management Journal, 15(1), 63-77. Marescaux, E., Winnie, S. D. & Sels, L. (2010). HRM practices and work outcomes: The role of basic need satisfaction. Mesmer-Magnus, J. R. & DeChurch, L. A. (2009). Information sharing and team performance: A meta-analysis. Journal of Applied Psychology, 94, 535−546.
Miller, D. & Friesen, P. H. (1982), .Innovation in conservative and entrepreneurial firms: Two models of strategic momentum. Strategic Management Journal, 3(1), 1-25. Morrow, P. C. & McElroy, J. C. (2003), .Work commitment conceptual and methodological developments for the management of human resources. Human Resource Management Review, 11(3), 177-180. Moynihan, L. M., Gardner, T. M., Park, H. J. & Wright, P. M. (2001). HR Practices and Customer Satisfaction: The Mediating Link of Commitment. (CAHRS Working Paper 01-14), Ithaca, NY: Cornell University, School of Industrial and Labor Relations, Center for Advanced Human Resource Studies. Available from Navarro, A., Acedo, F. J., Robson, M., Ruzo, E. & Losada, F. (2010). Antecedents and Consequences of Firm's Export Commitment: An Emperical Study. Journal of International Marketing , 18(3), 41-61. Paauwe, J. & Boselie, P. (2005), .HRM and performance: What’s next? Human Resource Management Journal, 15(4), 68-83. Popadiuk, S. & Choo, C. W. (2006). Innovation and knowledge creation: How are these concepts related? International Journal of Information Management, 26(4), 302-312. Prasetya, A. & Kato, M. (2011). The Effect of Financial and Non-Financial Compensation to Employee Performance. The 2nd International Research Symposium in Service Management Yogyakarta, Indonesia, 26-30. Rogg, K. L., Schmidt, D. B., Shull, C. & Schmitt, N. (2001). Human resource practices, organizational climate, and customer satisfaction. Journal of management, 27(4), 431-449. Schuler, R. S. (1989). Strategic human resource management and industrial relations. Human Relations, 42(2), 157-184. Sekaran, U. (2006). Research methods for business: A skill building approach. John Wiley & Sons. Singh, S. K., Hawkins, C., Clarke, I. D., Squire, J. A., Bayani, J., Hide, T. & Dirks, P. B. (2004). Identification of human brain tumour initiating cells. Nature, 432(7015), 396-401. Shipton, H., Fay, D., West, M., Patterson, M. & Birdi, K. (2005), .Managing people to promote innovation. Creativity and Innovative Management, 14(2), 118-128. Tan, C. L. & Nasurdin, A. M. (2010). Human Resource Management Practices and Organizational Innovation: An Emperical Study in Malaysia. The Journal of Applied Business Research, 26(4), 105-116. Tan, C. L. & Nasurdin, A. M. (2011). Human Resource Management Practices and Organizational Innovation: Assessing the Mediating Role of Knowledge Management Effectiveness. Electronic Journal of Knowledge Management , 9(2), 155-167. Tourangeau, A. E., & Gravly, L. A. (2006). Nurse Intention to remain employed: Understanding and strengthening determinants. Journal of advance nursing, 55(6), 497-509 Tung, L. L. (2004), .Knowledge management: An exploratory study on manufacturing companies in Penang. Unpublished M.B.A. dissertation, Olympia College Penang, Nottingham Trent University, United Kingdom. Ullah, I. & Rehman, K. U. (2015). Effect of Gender of Leader (Transformational/ Transactional), Satisfaction with the Leader on Employee Turnover Intention. Global Advanced Research Journal of Educational Research and Review, 4(6), 097-104. Ullah, I. & Yasmin, R. (2013). The Influence of Human Resource Practices on Internal Customer Satisfaction and Organizational Effectiveness. Journal of Internet Banking and Commerce, 18(2). 1-28. Ullah, I., Usman, M., Niazi, A. S., Farooq, M., Afzal, W. & Khan, M. A. (2012). Being Dissimilar: Religious Dissimilarity, Gender Dissimilarity, Value Dissimilarity and Job Satisfaction. Information Management and Business Review , 4(2), 56-63. Usman, M., Ullah, I., Kayani, M. B., Haroon, F. & Khan, M. A. (2012). The Impact of Marketing Mix and Market Orientation on Export Performance. Journal of Economics and Behavioral Studies, 4(1), 66-71. Wang, C. L., Tomas, M. T., Ketchen, D. J. & Ahmed, P.K. (2008). Knowledge management orientation, Market orientation, and firm performance: an integration and empirical examination. J. Strateg. Martet, 17(2), 99-122. Wang, S. & Noe, R. A. (2010). Knowledge sharing: A review and directions for future research. Human Resource Management Review, 20(2), 115−131. Wang, S., Noe, R. A. & Wang, Z. M. (2014). Motivating knowledge sharing in knowledge management systems a quasi–field experiment. Journal of Management, 40(4), 978-1009.
Wan-Jusoh, W. J. (2000). Determining key success factors in new product development: Evidence from manufacturing companies in Malaysia. Journal of International Business and Entrepreneurship, 8(1), 21-40. Weisberg, R. W. (2006). Creativity: Understanding innovation in problem solving, science, invention, and the arts. John Wiley & Sons. Wright, P. M. & McMahan, G. C. (1992), .Theoretical perspectives for strategic human resource management. Journal of Management, 18(2), 295-320. Yazhou, W. & Jian, L. (2013). An empirical research on knowledge management orientation and organizational performance: the mediating role of organizational innovation. African Journal of Business Management , 7(8), 604-612. Zoghi, C., Mohr, R. & Meyer, P. (2010). Workplace organization and innovation. Canadian Journal of Economics, 43(2), 622-639.
How to Cite
FAROOQ, Muhammad; ULLAH, Irfan; HAMEED, Raja Mahzhar. HR Practices and Organizational Innovation: The Mediating Role of Knowledge Management Effectiveness. Journal of Social and Development Sciences, [S.l.], v. 7, n. 3, p. 50-67, oct. 2016. ISSN 2221-1152. Available at: <>. Date accessed: 25 sep. 2017.
Research Paper