Analysis of the Combined and Split up Effects of Strategic Human Resource Practices on Knowledge Management Capacity and Firm-Innovation

Abstract

This study was organized to test the combined and split effects of Strategic Human resource (SHR) practices on organizational innovation and on knowledge management capacity. Data was collected through survey questionnaires from 300 private bank sector employees including bank officers, administrative officers, middle and upper management and then applied partial least square (PLS) technique to elaborate the relationships between independent and dependent variables. The findings of this study showed that each specific SHR practice has a positive effect on knowledge management capacity and organizational innovation except (i) “selective staffing” and (ii) “training” dimensions of SHR. They have week but positive impact on knowledge management capacity and organizational. In addition, the combined effect of SHR practices on knowledge management capacity and organizational innovation was also significant and positive. This study has contributed to managerial and theoretical implications and lastly, limitations and future research were also discussed.