<abstract xmlns="http://www.w3.org/1999/xhtml"><bold>Background and purpose:</bold> Recent reviews of the human resource management (HRM) literature continue to position knowledge management and intellectual capital as the key determinants for competitiveness, productiveness and organizational performance. This article explores the nexus between knowledge-based HRM practices, knowledge management capacity, intellectual capital, product and process innovation in small and medium-sized enterprises (SMEs).<bold>Design/Methodology/Approach:</bold> Data were gleaned from 250 registered SMEs in Jordan using a simple random sampling technique. A covariance structural equation modelling (CB-SEM) was deployed in testing the proposed research model.<bold>Results:</bold> The findings cast light on the positive influence of knowledge-based HRM practice of SMEs on SMEs knowledge management capacity, intellectual capital and, product and process innovation. Similarly, knowledge management capacity SMEs exerts positive impact on their intellectual capital and, product and process innovation. Intellectual capital also emerges as a strong predictor for SMEs product and process innovation. Finally, a serial indirect effect (mediation) of knowledge management capacity and intellectual capital on the relationship between knowledge-based HRM practice of SMEs and, product and process innovation were revealed.<bold>Conclusion:</bold> Knowledge-based HRM practices and innovation have received vast amount of research attention, yet there is a lack of understanding on the process by which the former leads to the latter. Drawing on knowledge-based view (KBV) theory, this study is among the first attempts to unveil the structural process between knowledge-based HRM practices and innovation through knowledge management capacity and intellectual capital. This study theoretically validated the KBV framework in a non-Western context and demonstrate the importance of knowledge-based HRM practices for SMEs innovativeness. The findings do not only provide useful insights for managers and scholars, but also serve as the building block for future research.</abstract>

Background and purpose: Recent reviews of the human resource management (HRM) literature continue to position knowledge management and intellectual capital as the key determinants for competitiveness, productiveness and organizational performance. This article explores the nexus between knowledge-based HRM practices, knowledge management capacity, intellectual capital, product and process innovation in small and medium-sized enterprises (SMEs).Design/Methodology/Approach: Data were gleaned from 250 registered SMEs in Jordan using a simple random sampling technique. A covariance structural equation modelling (CB-SEM) was deployed in testing the proposed research model.Results: The findings cast light on the positive influence of knowledge-based HRM practice of SMEs on SMEs knowledge management capacity, intellectual capital and, product and process innovation. Similarly, knowledge management capacity SMEs exerts positive impact on their intellectual capital and, product and process innovation. Intellectual capital also emerges as a strong predictor for SMEs product and process innovation. Finally, a serial indirect effect (mediation) of knowledge management capacity and intellectual capital on the relationship between knowledge-based HRM practice of SMEs and, product and process innovation were revealed.Conclusion: Knowledge-based HRM practices and innovation have received vast amount of research attention, yet there is a lack of understanding on the process by which the former leads to the latter. Drawing on knowledge-based view (KBV) theory, this study is among the first attempts to unveil the structural process between knowledge-based HRM practices and innovation through knowledge management capacity and intellectual capital. This study theoretically validated the KBV framework in a non-Western context and demonstrate the importance of knowledge-based HRM practices for SMEs innovativeness. The findings do not only provide useful insights for managers and scholars, but also serve as the building block for future research.

Knowledge-based HR Practices and Innovation in SMEs

Girne American University, Faculty of Economics and Business

Organizacija

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Knowledge-based HR Practices and Innovation in SMEs"}

Background and purpose: Recent reviews of the human resource management (HRM) literature continue to position knowledge management and intellectual capital as...

Knowledge-based HR Practices and Innovation in SMEs

Published Online: Mar 28, 2019

Page range: 6 - 21

Received: Sep 11, 2018

Accepted: Jan 22, 2019

DOI: https://doi.org/10.2478/orga-2019-0002

Keywords
HR Practices, intellectual capital, product innovation, process innovation, knowledge capacity

© 2019 Mohammad Jaber Yousef Al-Tal et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Knowledge-based HR Practices and Innovation in SMEs

Published Online: Mar 28, 2019

Page range: 6 - 21

Received: Sep 11, 2018

Accepted: Jan 22, 2019

DOI: https://doi.org/10.2478/orga-2019-0002

KeywordsHR Practices, intellectual capital, product innovation, process innovation, knowledge capacity

© 2019 Mohammad Jaber Yousef Al-Tal et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
HR Practices, intellectual capital, product innovation, process innovation, knowledge capacity