HRM and innovation: the mediating role of market-sensing capability and the moderating role of national power distance

Lin, C-H, Sanders, K, Sun, J-M, Shipton, H ORCID: https://orcid.org/0000-0003-4006-7923 and Mooi, EA, 2018. HRM and innovation: the mediating role of market-sensing capability and the moderating role of national power distance. International Journal of Human Resource Management. ISSN 0958-5192

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Abstract

This paper examines the mechanism through which human resource management (HRM) practices promote firms’ innovation and how this relationship differs across cultures. Based on a dataset of 3,755 firms from 13 countries, this study finds that in most countries employee-oriented HRM practices that dedicate attention to employee needs and interests are positively related to firms’ market-sensing capability, which is the capability to continuously learn about their markets. Market-sensing capability is in turn significantly related to firms’ product and process innovation. Cross-country examination further reveals that in high power distance countries employee- oriented HRM practices have a stronger positive effect than in low power distance countries. This study highlights the importance of HRM in supporting the use organizations make of external knowledge, which is critical for organizational innovation. Bringing an external perspective, we complement existing literature that emphasizes the role of HRM in integrating internal knowledge. Our cross-cultural findings contribute to the understanding of cultural contingency in HRM theories.

Item Type:	Journal article
Publication Title:	International Journal of Human Resource Management
Creators:	Lin, C.-H., Sanders, K., Sun, J.-M., Shipton, H. and Mooi, E.A.
Publisher:	Routledge
Date:	14 May 2018
ISSN:	0958-5192
Identifiers:	Number Type 10.1080/09585192.2018.1474938 DOI
Divisions:	Schools > Nottingham Business School
Record created by:	Jonathan Gallacher
Date Added:	25 Apr 2018 08:08
Last Modified:	14 Nov 2019 03:00
URI:	https://irep.ntu.ac.uk/id/eprint/33314

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