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Reviewing Human Resource Management (HRM) and innovation literature, an identified gap exists in the mechanism in which the association between HRM and innovation is happen. To respond, the current study has suggested a moderated mediated mechanism to explain the link between HRM, through its new High Performance Work Systems (HPWS) and organisational innovation, as employee engagement mediates the relationship between HPWS and employee creativity. Then later one has subsequent influence on organisational innovation; moreover, the model also considers the moderating role of employee perspective-taking between HPWS and employee engagement.Design/methodology/approachA quantitative-deductive causal method, along with a cross-sectional approach was adopted, and SMEs in Jordan were the focus for the present study, through targeting employees in Research and Development centres. Data were collected through a self-administered questionnaire answered by 272 employees and Structural Equation Modelling using SMART-PLS was used for the statistical analysis.FindingsThe results confirmed that employee engagement fully mediated the relationship between HPWS and employee creativity and accounted for 69.5% of the variance; additionally, perspective-taking as a moderator of the relationship between HPWS and employee engagement was confirmed. Moreover, employee creativity significantly predicted organisational innovation to moderate levels.Originality/valueThe study suggested a unique mechanism for the link between HPWS and organisational innovation, contributing to the suggested gap that could have numerous variables acting as mediators or moderators which require further investigation to explore other possible mechanisms.
Employee Relations: An International Journal – Emerald Publishing
Published: Feb 16, 2021
Keywords: HRM; HPWS; Perspective-taking; Employee engagement; Employee creativity; Organisational innovation; SMEs
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