Abstract
In the face of today’s competitive and complex environment, small and medium enterprises (SMEs) in China need to innovate in order to foster their development and achieve their business goals. Human resource management is a part of business innovation that cannot be ignored. How to innovate through human resources so as to improve the innovative performance of enterprises and how to ensure that enterprises’ human capital contributes to the achievement of their goals are issues that every SME needs to face. This research proposes a model of the relationship between human resource management innovation, employee competencies, and enterprise innovation performance. The model was tested on a survey of 110 employees from a sample of Chinese SMEs. The results show that human resource management innovation is positively related to enterprise innovation performance; human resource management innovation is positively related to employee competencies; employee competencies are positively related to enterprise innovation performance; employee competencies play a partially mediating role in the positive relationship between human resource management innovation and enterprise innovation performance.
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