Promoting Innovative Performance through Social Embeddedness: An Analysis on Innovative Human Capital among SMEs

Abstract

The purpose of the paper is to examine the mediating role of innovative human capital (in terms of uniqueness of human capital, value of human capital, and proactiveness) on the relationship between social embeddedness (in terms of structural and relational embeddedness) and innovative performance in the context of Malaysian SMEs. A total of 262 usable questionnaires were collected from SMEs in Malaysia for testing these research objectives. The results of direct effects indicate that both structural and relational embeddedness have strong relationship with all three dimensions of innovative human capital namely uniqueness of human capital, value of human capital, and proactiveness. Further, uniqueness of human capital can increase the level of innovative performance. And also uniqueness of human capital can be a mediating variable on the relationship between both structural and relational embeddedness with innovative performance. Utilizing the structural and relational embeddedness, firms can create a unique and valuable asset of knowledge and increase the proactiveness among the individuals. In addition, social embeddedness can increase the level of innovative performance if firms select unique human capital with rare skill and knowledge simultaneously.Index Terms-Social embeddedness, innovative human capital, innovative performance, SMEs, and Malaysia.

Effects of key leadership determinants on business sustainability in entrepreneurial enterprises

“…The unique characteristics of small enterprises, such as being flexible, having a simple organisational structure, valuing entrepreneurship and openness, are vial elements for creativity and innovation (Parida et al , 2012). A Malaysian study also affirms the importance of building innovative capabilities in the SME culture to enhance performance and venture creation (Halim et al , 2014). The findings suggest the distinctive cultural context of entrepreneurial leadership for business sustainability in Thai small enterprises and other developing Asia countries, which may vary from those in the Western developed economies.…”

Does Uniqueness of Human Capital Predict Innovative Performance? Testing the Moderating Role of Intrinsic Motivation in the Handicrafts Sector of Kashmir

“…Though many works have been conducted related to innovative performance, research needs to be more conclusive about the innovative performance indicators Hagedoorn and Cloodt (2003). However, the unique human capital has been usually labeled as a significant contributor to innovative performance Alpkan et al (2010), Cabello-Medina et al (2011), Halim et al (2014, Sun et al (2020). The attribute that makes human capital unique from other resources of an organization is its ability to embed novelty and utility in the products and services.…”

“…The organizations need to promote a conducive atmosphere for upbringing the uniqueness in human capital, which eventually will ensure sustainable corporate innovativeness Rothwell (1975). The overall spirit to benefit from the volatility of the business environment by encouraging the uniqueness of human capital would be possible only if the organization provides a congenial atmosphere for creativity and innovation Garavan et al (2001), Santos-Rodrigues et al (2013, Halim et al (2014). When these efforts are implemented in letter and spirit by the organization, these endeavors will provide a competitive edge through unique human capital, practices, processes, products, and services Hornsby and Benson (2002), Fleisher et al (2010), Bornay-Barrachina et al (2012).…”

“…When these efforts are implemented in letter and spirit by the organization, these endeavors will provide a competitive edge through unique human capital, practices, processes, products, and services Hornsby and Benson (2002), Fleisher et al (2010), Bornay-Barrachina et al (2012). The existing literature also states that innovative performance is a crucial result of the uniqueness of human capital Halim et al (2015), Kehoe and Tzabbar, (2015), Halim et al (2016). Given the higher volatility due to globalization, modern-day businesses are concerned about the ways and tactics to enhance overall performance, whether business or nonbusiness.…”

The Effect of Service Innovation Orientation and Open Innovation on Innovation Performance of Medium and Small Private Hospitals in India

“…The organization which continuously look for achievements are very innovative about their quality and quantity of ideas. Though, the quality and quantity of ideas are two independent parameters, but when combined they form the definition of innovative performance (Halim et al, 2014). See Figure 1 for the framework of the research study.…”