Is the Synergism Between SHRM and Firm Ambidexterity Still of a Matter?

Abstract

Recent studies have addressed the significance of the HR system concerning organization ambidexterity and firm innovation performance, however, research overlooked the influential power of intellectual capital-enhancing HR configurations both on firm innovation performance and ambidexterity. We designed rigorous time-lagged research with three waves of data gathering. We have found that firm explorative and exploratory capabilities significantly mediate the relationship between human, social and organizational capital-enhancing HR configurations and firm innovation performance. In fact, our study mirrors that how such a specific form of HR system has the capacity to fuel firm ambidexterity toward innovation performance and answers the ongoing debates on firms’ contradictory demand for exploitative and exploratory capabilities. By well-articulating the importance of IC-enhancing HR practices and by identifying the mediation effect of firm exploitative and exploratory capabilities in linking IC-enhancing HR practices to firm innovation performance, this study extends prior research and contributes to the field of HRM and ambidexterity. We also provide a synthesis of future research suggestions.