Purpose
This study aims to explore the relationship between knowledge management (KM) and firm performance through mediating effects of strategic human resource management (HRM) and organizational innovations.
Design/methodology/approach
Usable responses from 638 employees belonging to 230 organizations operating in India were collected via questionnaires. To determine the hypothesized relationships between the study variables, namely, KM capacity, strategic HRM, administrative innovation, technical innovation and firm performance, bootstrapping method via PROCESS was put into use.
Findings
The findings strengthen the notion that effective KM in firms leads to better innovation capabilities and higher firm performance. Further, the study reveals that the effects of KM capacity on firm performance go through a relationship chain (serial mediation) consisting of strategic HRM, administrative innovation and technical innovation.
Practical implications
The results undeniably infer that the effective management of knowledge is critical for leveraging innovations and other performance indicators in organizations. More specifically, it does not only result in enhanced firm performance but also in proper utilization of strategic HR practices for the benefits of employees, with a boost in administrative and technical innovations in organizations.
Originality/value
By confirming several mediation paths through strategic HRM, administrative and technical innovations, this study offers some noteworthy insights in expounding the relationship between KM and firm performance.
The purpose of the current study is to investigate the linkage between strategic HRM (SHRM) and firm performance through knowledge management capability and innovation performance. Primary data were gathered from 624 employees working in 252 Indian firms. Using Model 6 of PROCESS macro, a serial mediation model was estimated to analyse the proposed relationships between SHRM, knowledge management capability, innovation performance and firm performance. The study has revealed that the use of SHRM practices which include selection, training, appraisal, rewards and empowerment results in enhanced knowledge management capability, improved innovation performance and heightened firm performance. Further, the results establish that knowledge management capability and innovation performance act as sequential mediators in linking SHRM to firm performance.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.