Improving Employee Innovation Performance of SMEs Through Human Resource Management Practices: A Moderated Mediation Model

Abstract

This paper proposes a theoretical model that analyzes the link between Human Resource Management practices (HRMPs) and employee innovation performance (EIP), the mediating role of entrepreneurial orientation (EO) and the moderating effect of organizational learning capability (OLC). A study was conducted using a cross-sectional approach in Sokoto, Nigeria, gathering data from sachet table water enterprises. Participants were selected through convenience sampling and questionnaires were personally administered. Hypotheses were tested using Partial Least Squares—Structural Equation Modelling (PLS-SEM). The findings suggest that EO mediates the relationship between HRMPs and EIP, while OLC moderates it. All six hypotheses were supported.This study adds to the current understanding of HRMPs by exploring the mediating role of EO and the moderating effect of OLC on enhancing and strengthening the same relationship.