MNEs’ Subsidiary HRM Practices and Firm Innovative Performance: A Tacit Knowledge Approach

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.

HR Practices for Supporting Interpersonal Trust and Its Consequences for Team Collaboration and Innovation

“…The research gap refers to a lack of explanation on how human resources (HR) practices develop intrateam trust and in effect advanced cooperation that results in better innovation within an organization. It has been mentioned that in general, well-applied HR practices indeed directly support innovation [36]. We emphasize the role of certain HR practices in building trust, which strengthens collaboration and facilitates innovation.…”

A Sustainable Development Perspective on Cooperative Culture, Knowledge Flow, and Innovation Network Governance Performance

“…Knowledge sharing refers to the spillover and transfer of knowledge between organizations, while knowledge creation refers to the absorption and reuse of external knowledge by network individuals. Li [36] points out that knowledge sharing is the process of knowledge interaction and dissemination among network members. In the research on the relationship between the process of knowledge creation and technological innovation ability, Yu [37] thinks that knowledge creation is a process in which enterprises create new knowledge through acquired heterogeneous knowledge.…”

“…Next, we analyzed the influence of a cooperative culture on knowledge flow from two dimensions of knowledge sharing and knowledge creation. On the one hand, a cooperative culture offers a mutual system of learning in which network members can share and exchange knowledge and experiences [36]. Messica (2011) [43] analyzes the innovation networks from the perspective of information flow and believes that cultural heterogeneity among members may inhibit knowledge sharing, while a good cultural atmosphere between organizations will enhance the sense of identity among individuals, promote commitments, and benefit knowledge sharing among members [44].…”

Exploring Innovation Adoption Behavior for Sustainable Development: The Case of Hungarian Food Sector

“…Among these environments, the agri-food sector is certainly among those that have received less attention in the economic literature [9]. Only in the last few decades have innovations in the agri-food sector found space in the international literature [10][11][12][13][14][15][16], emphasizing the opportunity to improve the ability of the agri-food companies to move from a traditional production sector focused on raw materials, to an innovative and consumer-oriented approach [17]. However, what emerges is that innovations adoption is mainly studied in large-size companies of developed economies [18], whereas innovation research on small and medium-sized companies have been substantially neglected [19].…”