Fostering exploitative and exploratory innovation through HRM practices and knowledge management capability: the moderating effect of knowledge-centered culture

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Abstract

Purpose

Given the important role of knowledge resource for organizational innovation, the purpose of this study is to examine the mediating mechanism of knowledge management capability (KMC) and the moderating role of knowledge-centered culture (KCC) in the relationship between human resource management (HRM) and firms’ innovation capabilities.

Design/methodology/approach

Analysis of moment structures and structural equation modeling are applied to examine the correlation among the constructs based on the survey data collected from 135 manufacturing firms.

Findings

The empirical findings reveal that KMC positively mediates the relationship between HRM practices and innovation capability. Especially, KCC of organization significantly fosters the impacts of HRM practices on KMC and aspects of innovation capability, namely, exploitative and exploratory innovation.

Practical implications

Chinese firms should invest in HRM practices and KMC to improve their innovation capabilities. In addition, developing KCC is suitable for Chinese firms to foster the effects of HRM practice on innovation capability.

Originality/value

By investigating the different moderated-mediation mechanisms, the paper has significantly contributed to advancing the body of knowledge of innovation theory and providing deeper insights on the correlation between HRM practices and firm’s capability for ambidextrous innovations.

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The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations.

Reuben M. Baron, David A Kenny (1986)

In this article, we attempt to distinguish between the properties of moderator and mediator variables at a number of levels. First, we seek to make theorists and researchers aware of the importance of not using the terms moderator and mediator interchangeably by carefully elaborating, both conceptually and strategically, the many ways in which moderators and mediators differ. We then go beyond this largely pedagogical function and delineate the conceptual and strategic implications of making use of such distinctions with regard to a wide range of phenomena, including control and stress, attitudes, and personality traits. We also provide a specific compendium of analytic procedures appropriate for making the most effective use of the moderator and mediator distinction, both separately and in terms of a broader causal system that includes both moderators and mediators.