Relationship between innovation‐led HR policy, strategy, and firm performance: A serial mediation investigation

Abstract

This research examines the relationship between innovation‐led strategy and innovation‐led HR policy (hereafter, management initiatives) and innovation performance. Our research model is theorized and tested in the Vietnamese context, based on the servant leadership theory and componential theory of creativity. We draw upon constructs of management initiatives, servant leadership, employee creativity, and firm innovation to hypothesize serial mediation mechanisms linking management initiatives to firm performance. Using a multilevel sample of 56 service firms, we conduct multilevel path analyses. We find that (a) individual‐level servant leadership mediates the top‐down relationship between management initiatives and employee creativity, (b) employee creativity mediates the bottom‐up relationship between individual‐level servant leadership and firm‐level innovation, and (c) firm‐level innovation mediates the bottom‐up relationship between employee creativity and firm‐level market performance. We conclude by discussing both theoretical and practical implications.

Putting the “Management” Back in Human Resource Management: A Review and Agenda for Future Research

“…Research at the LTMM level has considered various types of HRM content, from individual high-performance HRM practices (e.g., Han, Bartol, & Kim, 2015; Pak & Kim, 2018; Vermeeren, 2014) to systems or bundles of HRM content (e.g., Chuang, Jackson, & Jiang, 2016; Do, Budhwar, & Patel, 2018; Jiang, Chuang, & Chiao, 2015; Neves, Almeida, & Velez, 2018; Sikora et al, 2015). However, despite the considerable breadth of HRM content considered, our review suggests that little research has been done on the roles that LTMMs play in an organization’s adoption of this content.…”

Between fit and flexibility? The benefits of high‐performance work practices and leadership capability for innovation outcomes

“…Prior research has also suggested that HPWS may generate the capacity for innovation (Do, Budhwar, & Patel, 2018; Fu, Flood, Bosak, Morris, & O'Regan, 2015; Sung & Choi, 2018). While HPWS do not themselves constitute a source of competitive advantage, they may serve to generate a unique set of HRM attributes to do so (Beugelsdijk, 2008; Colbert, 2004; Patel, Messersmith, & Lepak, 2013).…”

Is coworker feedback more important than supervisor feedback for increasing innovative behavior?

“…Innovative behavior has quickly become a growing area of interest in HRM literature (Cooke & Saini, ), with several studies demonstrating a positive link between empowering HRM practices and innovative employee behavior (e.g., Do, Budhwar, & Patel, ; Y. Zhou, Hong, & Liu, ). Innovation comprises idea generation , occurring when employees generate new ideas through exploration, experimentation, and risk taking (Miron‐Spektor, Erez, & Naveh, ), and idea implementation , in which employees and the organization put ideas into practice, which generally requires support (resources, funding, and time), integration with existing systems, and revision of the ideas (Alexander & Van Knippenberg, ; West, ).…”

“…Innovative behavior has quickly become a growing area of interest in HRM literature (Cooke & Saini, 2010), with several studies demonstrating a positive link between empowering HRM practices and innovative employee behavior (e.g., Do, Budhwar, & Patel, 2018;Y. Zhou, Hong, & Liu, 2013).…”