Does a High-Performance Human Resource Practice Stimulate Employee Creativity: A Moderated Mediation Model

Abstract

This study explores entrepreneurial leadership as a moderator between employee work engagement and perceptions of high-performance human resource management (HRM) practices. Additionally, it delves into the mediating role of employee work engagement between employee creativity and these perceptions. Utilizing a quantitative research strategy, the study includes a sample of 396 members from the banking sector in Pakistan. The study employs PLS-SEM to test hypotheses. Findings indicate that employee work engagement serves as a mediator between employees’ perceptions of high-performance HRM practices and creativity, while entrepreneurial leadership moderates this association. Entrepreneurial leadership enhances the employee–organization relationship and strengthens the impact of high-performance HRM practices on positive work-related behaviours. The study contributes to the body of knowledge by examining the strong role of employee work engagement in the relationship between employee perceptions of high-performance HRM practices and creativity as mediator, as well as the significance of entrepreneurial leadership as a moderator in that relationship to optimize the working of organization stimulating through the demand resource theory.