The Mediating Role of Strategic Adaptability on the Relationship between Human Resource Management Strategies and Innovation

Abstract

Dynamic environmental changes continue to impact organizations’ performance and goals, prompting them to adapt and develop strategies that foster innovation continually. Thus, HRMS enables talented, retaining skilled, and innovative employees who contribute with creative ideas and creative problem-solving problems to enhance innovation practices in organizations. Therefore, the findings of previous studies are insufficient and considered as empirical evidence to investigate the research constructs relationship. This study aims to examine the gap in strategic adaptability via HRM strategies and innovation in Jordanian banks. The study employs data analysis and hypotheses testing, descriptive analysis approach, and (SEM) structural equation modeling through SPSS-24 and PLS-SEM-4 software. The research population includes 16 Jordanian banks, and a stratified sampling method conducted on 468 respondents resulted in 455 completed ones, the respondents are middle level managers and department heads. The findings reveal a positive significant impact of HRMS and innovation (INN), a significant positive impact of HRMS and strategic adaptability (SA), and a significant positive effect between strategic adaptability (SA) and innovation (INN). In addition, the findings indicate a partial indirect relationship effect between strategic adaptability (SA) via HRMS and innovation (INN). The conclusion shows that the bank’s performance is highly improved by strategic adaptability, which allows the bank to quickly respond to local and global environmental changes, challenges, crises, and market trends, and provides valuable theoretical and practical insights regarding the role of strategic adaptability (SA) relationship between HRM strategies (HRMS) and innovation (INN). These findings are relevant to the global banking sector due to the similar operating conditions and environments. Moreover, a better understanding of these relationships by practitioners and researchers for future studies in different environments, and sectors.