The mediating role of innovation in the relationship between high-performance human resource management practices and firm performance

Abstract

The study aims to evaluate the impacts of high-performance human resource management practices on firm performance through the mediating variable of innovation. The research model was developed and integrated from high-performance human resource management theory, innovation, and firm performance. The analysis results from 312 enterprises in industrial and service sectors indicated that high–performance human resource management practices had an indirect impact on firm performance and a direct effect on innovation. Furthermore, innovation plays a mediating role in the relationship between high-performance human resource management practices and firm performance. In addition, organizational size is also a characteristic variable that impacts firm performance. Finally, the study provides some theoretical and practical implications for managers to improve enterprises' human resource management systems.

Keywords

• High-performance human resource management
• Innovation
• Firm performance
• Resource-based view