The Influence Of Human Resource Management Practices On Organizational Innovation : The Role Of Knowledge Management Effectiveness As A Mediator
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Date
2009
Authors
Tan, Cheng Ling
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Abstract
The purposes of this study were to: (a) examine the direct effect of a set of HRM
practices and organizational innovation; and (b) investigate whether knowledge
management effectiveness serves as a mediator in the above relationship.
Organizational innovation was operationalized as comprising of three dimensions:
product innovation, process innovation, and administrative innovation. HRM
practices consist of five dimensions: performance appraisal, career management,
training, reward system, and recruitment. Knowledge management effectiveness was
conceptualized as comprising of knowledge acquisition effectiveness, knowledge
sharing effectiveness, and knowledge application effectiveness. Four broadly
hypothesized relationships were tested using a sample of 183 manufacturing firms
located in six states: Selangor, Penang, lohor, Perak, Kedah, and Kuala Lumpur.
Data were obtained via questionnaires. The factor analyses revealed that even though
organizational innovation remains multidimensional, knowledge management
effectiveness was found to be unidimensional. HRM practices were found to have
five dimensions as theorized. From the analysis done using hierarchical regressions,
it shows that only training has a positive and significant relationship with the three
dimensions of organizational innovation. Performance appraisal was found to be
positively and significantly related to administrative innovation. In addition, this
study also demonstrates that training and performance appraisal, are positively and
significantly related to knowledge management effectiveness. Knowledge
management effectiveness fully mediates the relationship between training and
process innovation, training and administrative innovation, and performance
appraisal and administrative innovation. However, knowledge management
effectiveness only partially mediates the relationship between training and product
innovation. The theoretical and practical implications of the study as well as
suggestions for future studies are also discussed.
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Keywords
Organizational innovation was operationalized as comprising of three dimensions , product innovation, process innovation, and administrative innovation.