Exploring predictors of innovation performance of SMEs: a PLS-SEM approach
ISSN: 0142-5455
Article publication date: 21 March 2023
Issue publication date: 10 July 2023
Abstract
Purpose
In the competitive business world, companies strive to be innovative, and to do so, they try to implement innovative human resource practices. Therefore, the authors propose an association between innovative human resource practice, organizational commitment, innovation performance and transformational leadership.
Design/methodology/approach
This study gathered data from 1,037 small- and medium-sized enterprises and implied partial least square structural equation modeling PLS-SEM using Smart PLS was adopted to test the hypotheses.
Findings
The findings reveal positive direct relationships between innovative human resource practices, organizational commitment and innovation performance. Moreover, organizational commitment positively mediates and transformational leadership significantly and positively moderates the relationship. Companies should use innovative recruitment and selection, performance management, and innovative compensation to enhance organizational commitment and innovation performance. In addition, the optimized organizational commitment aids in strengthening the connection between innovative human resource practices and firms' innovation performance.
Originality/value
Managers should also develop a sense of affiliation and attachment to increase innovation performance. The study contributes empirically to the literature on innovative human resource practices and their effect on organizational commitment and innovation performance.
Keywords
Citation
Tian, H., Iqbal, S. and Akhtar, S. (2023), "Exploring predictors of innovation performance of SMEs: a PLS-SEM approach", Employee Relations, Vol. 45 No. 4, pp. 909-924. https://doi.org/10.1108/ER-02-2022-0078
Publisher
:Emerald Publishing Limited
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