Unlocking "Black Box": Mediating Role of Knowledge Process Capability on HRM Practices and Innovative Performance

Abstract

In this paper, the effect of ; ability-enhancing human resource management practices (staffing, training), motivation-enhancing human resource management practices (compensation, performance appraisal) opportunity to perform-enhancing human resource management practices (involvement, communication) , was examined along knowledge process capability (Acquisition process, Conversion process, Application process, Protection process) on innovative performance among Jordanian banks, the construct of innovative performance measured by (Administrative innovation and Technical innovation). The study employed convenience sampling to which 300 questionnaires distributed. This paper contributes of unlocking "black box" problem with mediating role of knowledge process capability as an explanatory factor to understand HRM- innovative performance relationship with the insight of knowledge-based view, ability motivation opportunity (AMO) and resource-based view (RBV) theory. The finding showed a significant impact of (ability, motivation, and opportunity)-enhancing human resource management practices, of knowledge process capability on innovative performance in the Jordanian banks. From the findings, the researcher provided recommendations for the banks regarding strengthening the relationship between their HRM, of knowledge process capability and their performance. The study also offered implications to theory and practice based on the findings.