Abstract
Although there is a general recognition that human resource management (HRM) practices are a key factor in a firm’s innovation performance, from the extant literature we see that empirical investigation does not always offer evidence to support this assertion. This paper proposes that knowledge transfer positively moderates the link between HRM practices and firm innovative performance in foreign multinational enterprises (MNEs) subsidiaries operating in China. Specifically, a tacit knowledge approach affects knowledge transfer in HRM practice as well as firm innovative performance. With hierarchical linear modeling, our results demonstrate that: (1) HRM practices can have a positive effect on firm innovative performance; (2) knowledge transfer can positively moderate the effects of HRM practices and firm innovative performance; and (3) the positive effects of knowledge received on HRM practices and firm innovative performance will be strengthened with a tacit knowledge approach. This paper shows that through the adaptation and application of a tacit knowledge approach, executives can create an atmosphere for interaction between the workforce and senior colleagues, forming an inter-intra network chain to share intangible knowledge that is mostly derived from the culture and experience.
Highlights
Innovation is regarded as a key factor to firm survival and sustainability in this turbulent market environment
The present paper aims to fill this gap by constructing a moderated model that demonstrates the connection between human resource management (HRM) practices and firm innovative performance, while at the same time integrating knowledge transfer received and the tacit knowledge approach on foreign multinational enterprises (MNEs) subsidiaries operating in China
Our findings revealed that the tacit knowledge approach strengthens the moderation effects of knowledge transfer received on the relationship between HRM practices and firm innovative performance
Summary
Innovation is regarded as a key factor to firm survival and sustainability in this turbulent market environment. The present paper aims to fill this gap by constructing a moderated model that demonstrates the connection between HRM practices and firm innovative performance, while at the same time integrating knowledge transfer received and the tacit knowledge approach on foreign multinational enterprises (MNEs) subsidiaries operating in China It is against this backdrop that this study attempts to address the following research questions: RQ1. As a key concept in the knowledge management literature, limitation of resources at times stifles firms’ pursuit of innovative strategies [27,28] for competitive advantage Such situations lead firms to seek a balance between tacit and explicit knowledge [29] as they cannot simultaneously focus on both of them to drive the organization innovative agenda. The last two sections present the conclusions, discussion, implications, limitations, and future research directions
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
