Insightful company leaders increasingly rely on data as their primary source of fresh concepts. Little is known about how improvements in HRM might inspire creativity in the workplace. This research explores the connection between knowledge management abilities and original thought in the context of human resource management policies and practises. Since then, we've expanded our primary data set for the ICT sector of the study to include over 200 small firms in the Klang Valley of Malaysia. To accomplish the aims of the study, adopt a quantitative strategy. The survey method is used to collect data from the heads of ICT SMEs and their top executives. More than two hundred survey responses were collected and evaluated for this study. PLS (Partial Least Squares) analysis was used to check the validity of the hypotheses and models. The intersection of HR and KM is an intriguing research topic, especially in the context of ne Companies must enhance their IT and knowledge management capabilities to fulfil the conflicting demands of exploration and extraction. In order to balance exploratory and exploitative innovations, small and medium-sized firms must take into account both internal and external business environments. Small and medium-sized firms (SMEs) must regularly watch their sector and be quick to respond to changes in order to maintain a competitive edge.In order to stay up with the rapidly evolving business climate, companies must have the appropriate personnel in place. In order to understand the connection between HRM and organizational innovation, this study emphasizes the significance of performance and knowledge management competence. Human resource management to provide long-term benefits. , with product creation. Recent research has established a connection between HRM competencies and worker expertise.