From Theory to Practice: HRM Practices and Intellectual Capital in Fostering Innovation

Abstract

In a rapidly changing business environment, organizational innovation and employee innovative work behavior are the basis for high organizational performance and long-term success. Against this background, the purpose of this study is to propose a conceptual model that links knowledge-based human resource management and intellectual capital and collaborative human resource management practices to innovative behavior at the level of the employee in the organizational context. Drawing on the existing literature and conceptual argument, the present study will argue for this strategic importance of workers’ innovative performance in promoting organizational success. Specifically, the study argues that adopting KHRM and CHRM practices are effective strategies that foster innovation within the organization. Furthermore, the research also reports the critical importance of intellectual capital in driving innovative work behavior. Intellectual capital acts as a mediator between HRM practices and innovative work behavior. The study's theoretical framework and conceptual propositions provide valuable insights into understanding and promoting innovation inside organizations. Additional investigation into these connections would provide pragmatic advice for HRM experts and organizational leaders who want to cultivate creativity and drive achievement within their organizations.