<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The main aim of this study is to explore the mediating effect of innovation in the relationship between human resource management (HRM) practices and organizational performance. HRM practices are observed through selective hiring, training, participative decision-making, and rewarding. Innovation is conceptualized over behavioral, product, process, and market innovation. The study relies upon the principles of social exchange theory and resource-based theory. Data were collected from 408 managers in an emerging economy context. The proposed conceptual model is evaluated with structural equation modeling using Lisrel 8.8 and SPSS 22. Study findings suggest that innovation influences the relationship between selective hiring, training, and participative decision-making and organizational performance. However, no mediating effect of innovation was found in a relationship between rewarding and organizational business performances. Since human resources and innovation are among the leading sources for building competitive advantage for companies, the study findings contribute to HRM and innovation.</p>
</abstract>

The main aim of this study is to explore the mediating effect of innovation in the relationship between human resource management (HRM) practices and organizational performance. HRM practices are observed through selective hiring, training, participative decision-making, and rewarding. Innovation is conceptualized over behavioral, product, process, and market innovation. The study relies upon the principles of social exchange theory and resource-based theory. Data were collected from 408 managers in an emerging economy context. The proposed conceptual model is evaluated with structural equation modeling using Lisrel 8.8 and SPSS 22. Study findings suggest that innovation influences the relationship between selective hiring, training, and participative decision-making and organizational performance. However, no mediating effect of innovation was found in a relationship between rewarding and organizational business performances. Since human resources and innovation are among the leading sources for building competitive advantage for companies, the study findings contribute to HRM and innovation.

HRM Practices and Organizational Performance: Mediation Effect of Innovation

PhD Associate Professor University of Sarajevo School of Economics and Business Sarajevo

PhD Associate Professor University of Sarajevo School of Economics and Business

South East European Journal of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"HRM Practices and Organizational Performance: Mediation Effect of Innovation"}

The main aim of this study is to explore the mediating effect of innovation in the relationship between human resource management (HRM) practices and...

HRM Practices and Organizational Performance: Mediation Effect of Innovation

Published Online: Jun 09, 2023

Page range: 85 - 99

DOI: https://doi.org/10.2478/jeb-2023-0007

Keywords
Innovation, Human Resource Management Practices, Organizational Business Performance

© 2023 Lejla Turulja et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

HRM Practices and Organizational Performance: Mediation Effect of Innovation

Published Online: Jun 09, 2023

Page range: 85 - 99

DOI: https://doi.org/10.2478/jeb-2023-0007

KeywordsInnovation, Human Resource Management Practices, Organizational Business Performance

© 2023 Lejla Turulja et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
Innovation, Human Resource Management Practices, Organizational Business Performance