How knowledge-based HRM practices and market turbulence foster organizational innovation capability: a two-path mediating role of knowledge sharing

Abstract

PurposeThe purpose of this paper is to investigate the mediating roles of tacit and explicit knowledge sharing (KS) in linking the relationship between knowledge-based HRM practices and innovation competence of firms. This study also explores the potential moderating role of market turbulence in fostering the influence of KS behaviors on two forms of innovation competence namely radical innovation and incremental innovation.Design/methodology/approachThe paper applied the quantitative approach and structural equation modeling to examine the correlation among the latent constructs based on the survey data collected from 293 participants in 115 firms.FindingsThe empirical findings of this study support the mediating role of KS behaviors in the relationship between knowledge-based HRM practices and aspects of innovation competence. It highlights the important role of market turbulence in stimulating the influence of KS behaviors on innovation capabilities.Research limitations/implicationsFuture research should investigate the impact of knowledge-based HRM practices on innovation capability via the mediating effects of knowledge management processes to bring better understanding of the importance of knowledge resources in organizations.Originality/valueThe paper significantly contributes to increasing knowledge and insights into the antecedent role of knowledge-based HRM practices, the mediating role of KS behaviors as well as the moderating role of market turbulence in fostering radical and incremental innovation, thereby advancing the body of comprehension of knowledge-based resources and innovation theory.