Human Resource Practice and Knowledge Management Capability in Smes

Abstract

Objective: Managers today recognise the value of knowledge as an intangible asset that fosters organisational creativity. Few studies, on the other hand, examine the role of human resource management in fostering knowledge competency, which leads to improved corporate innovation.
 Methodology: The study is empirically based on primary data collected from 200 SMEs in Malaysia's Klang Valley's ICT sector. A quantitative technique is employed to achieve the study's aims. A survey technique is used to poll owners, Chief Executive Officers (CEOs), and management of ICT SMEs. A total of 200 responses were collected and analysed. The research models and hypotheses were evaluated using the Partial Least Squares (PLS) technique.
 Findings: Both identifying the elements and mediation mechanisms in the link between human resource management (HRM) and innovation, as well as the interaction between HRM and knowledge management in the context of innovation, are study gaps. According to the research, Human Resource Management (HRM) Capabilities are positively related to Knowledge.
 Implications: As a result, this paper investigates the implications of human resource management policies and practises on the relationship between knowledge management competency and creativity.