How do commitment-based HRM practices and a developmental culture interact to foster open innovation in SMEs?
-
DOIhttp://dx.doi.org/10.21511/ppm.22(1).2024.20
-
Article InfoVolume 22 2024, Issue #1, pp. 231-243
- 334 Views
-
54 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
This paper aims to bring new insights into the role of commitment-based human resource management practices in open innovation in small and medium-sized enterprises. Additionally, the goal is to enhance comprehension of the aforementioned interactions by considering the mediating effect of developmental culture. Data were collected from owners and managers of 131 small and medium-sized enterprises operating in the service and manufacturing sectors in Albania. The study employed a quantitative research instrument, namely online surveys. To yield results and extract figures, the study applied partial least squares-structural equation modeling, examining the interrelationships among constructs. The empirical results highlight the direct effects of commitment-based human resource management practices and developmental culture on open innovation. Specifically, the study reveals that commitment-based human resource management practices have a significant role in promoting open innovation (O = 0.598, t = 10.057, p = 0.000). Additionally, the findings indicate that developmental culture serves as a complementary factor by mediating the connection between commitment-based human resource management practices and open innovation (O = 0.136, t = 1.789, p = 0.037). This study draws the attention of business owners and strategy developers circumnavigating the Albanian small and medium-sized enterprises environment. Barring certain limitations, it enthralls their propensity toward innovation, aligning it with an enabling business culture.
Acknowledgment
This work is supported by Tomas Bata University internal grants, FaME TBU No. IGA/FaME/2023/012 “Closed and open innovation: role of human resource, servant leadership, digitalization, and uncertainty.”
- Keywords
-
JEL Classification (Paper profile tab)O36, O32, M10
-
References66
-
Tables5
-
Figures2
-
- Figure 1. Conceptual framework
- Figure 2. Model (Extracted from SmartPLS 4.0)
-
- Table 1. Measurement model
- Table 2. Discriminant validity: Fornell-Larcker criterion
- Table 3. Discriminant validity: Heterotrait-monotrait ratio (HTMT)
- Table 4. Results of hypotheses testing (direct and indirect effect)
- Table 5. Model fit
-
- Alosani, M. S., Al-Dhaafri, H. S., & Awadh Abdulla, A. (2021). Investigating the role of HRM practices on service innovation: Empirical evidence from UAE government agencies. Management Research Review, 44(1), 1-24.
- Alqudah, I. H. A., Carballo-Penela, A., & Ruzo-Sanmartín, E. (2022). High-performance human resource management practices and readiness for change: An integrative model including affective commitment, employees’ performance, and the moderating role of hierarchy culture. European Research on Management and Business Economics, 28(1), 100177.
- Amabile, T. M., & Pratt, M. G. (2016). The dynamic componential model of creativity and innovation in organizations: Making progress, making meaning. Research in Organizational Behavior, 36, 157-183.
- Aquilani, B., Abbate, T., & Codini, A. (2017). Overcoming cultural barriers in open innovation processes through intermediaries: A theoretical framework. Knowledge Management Research & Practice, 15(3), 447-459.
- Bagozzi, R. P., & Yi, Y. (2012). Specification, evaluation, and interpretation of structural equation models. Journal of the Academy of Marketing Science, 40(1), 8-34.
- Barjak, F., & Heimsch, F. (2023). Understanding the relationship between organizational culture and inbound open innovation. European Journal of Innovation Management, 26(3), 773-797.
- Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
- Barney, J., Wright, M., & Ketchen Jr, D. J. (2001). The resource-based view of the firm: Ten years after 1991. Journal of Management, 27(6), 625-641.
- Bendickson, J. S., Muldoon, J., Liguori, E. W., & Midgett, C. (2017). High performance work systems: A necessity for startups. Journal of Small Business Strategy, 27(2), 1-12.
- Bogers, M., Foss, N. J., & Lyngsie, J. (2018). The “human side” of open innovation: The role of employee diversity in firm-level openness. Research Policy, 47(1), 218-231.
- Carrasco-Carvajal, O., Castillo-Vergara, M., & García-Pérez-de-Lema, D. (2023). Measuring open innovation in SMEs: An overview of current research. Review of Managerial Science, 17(2), 397-442.
- Çera, G., Breckova, P., Çera, E., & Rozsa, Z. (2019). The effect of business enabling policies, tax treatment, corruption and political connections on business climate. Acta Polytechnica Hungarica, 16(4), 113-132.
- Ceylan, C. (2013). Commitment-based HR practices, different types of innovation activities and firm innovation performance. The International Journal of Human Resource Management, 24(1), 208-226.
- Chesbrough, H. W. (2003). Open innovation: The new imperative for creating and profiting from technology. Harvard Business Press.
- Collins, C. J., & Smith, K. G. (2006). Knowledge exchange and combination: The role of human resource practices in the performance of high-technology firms. Academy of Management Journal, 49(3), 544-560.
- Creswell, J.W., & Creswell, J.D. (2017). Research design: Qualitative, quantitative, and mixed methods approaches. Sage Publications.
- Delery, J. E. (1998). Issues of fit in strategic human resource management: Implications for research. Human Resource Management Review, 8(3), 289-309.
- Diamantopoulos, A., & Siguaw, J. A. (2006). Formative versus reflective indicators in organizational measure development: A comparison and empirical illustration. British Journal of Management, 17(4), 263-282.
- Engelsberger, A., Bartram, T., Cavanagh, J., Halvorsen, B., & Bogers, M. (2023). The role of collaborative human resource management in supporting open innovation: A multi-level model. Human Resource Management Review, 33(2), 100942.
- Engelsberger, A., Halvorsen, B., Cavanagh, J., & Bartram, T. (2022). Human resources management and open innovation: The role of open innovation mindset. Asia Pacific Journal of Human Resources, 60(1), 194-212.
- Fernández-Esquinas, M., van Oostrom, M., & Pinto, H. (2017). Key issues on innovation, culture and institutions: Implications for SMEs and micro firms. European Planning Studies, 25(11), 1897-1907.
- Gielnik, M. M., Zacher, H., & Schmitt, A. (2017). How small business managers’ age and focus on opportunities affect business growth: A mediated moderation growth model. Journal of Small Business Management, 55(3), 460-483.
- Guan, X., & Frenkel, S. (2020). Organizational support and employee thriving at work: Exploring the underlying mechanisms. Personnel Review, 50(3), 935-953.
- Haar, J., O’Kane, C., & Daellenbach, U. (2022). High performance work systems and innovation in New Zealand SMEs: Testing firm size and competitive environment effects. The International Journal of Human Resource Management, 33(16), 3324-3352.
- Hansen, N. K., Güttel, W. H., & Swart, J. (2019). HRM in dynamic environments: Exploitative, exploratory, and ambidextrous HR architectures. The International Journal of Human Resource Management, 30(4), 648-679.
- Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115-135.
- Hitt, M. A., Xu, K., & Carnes, C. M. (2016). Resource based theory in operations management research. Journal of Operations Management, 41(1), 77-94.
- Hong, J. F. L., Zhao, X., & Stanley Snell, R. (2019). Collaborative-based HRM practices and open innovation: A conceptual review. The International Journal of Human Resource Management, 30(1), 31-62.
- Hormiga, E., & García-Almeida, D. J. (2016). Accumulated knowledge and innovation as antecedents of reputation in new ventures. Journal of Small Business and Enterprise Development, 23(2), 428-452.
- Hossain, M., & Kauranen, I. (2016). Open innovation in SMEs: A systematic literature review. Journal of Strategy and Management, 9(1), 58-73.
- Jebali, D., & Meschitti, V. (2021). HRM as a catalyst for innovation in startups. Employee Relations: The International Journal, 43(2), 555-570.
- Karim, S., Qamruzzaman, M. D., & Tan, A. W. K. (rev.ed.). (2020). Corporate culture, management commitment, and HRM effect on operation performance: The mediating role of just-in-time. Cogent Business & Management, 7(1), 1786316.
- Kerdpitak, C., & Jermsittiparsert, K. (2020). The influence of organizational culture, employee commitment and organization citizen behaviour on the HRM practices: Mediating role of perceived organization support. Systematic Review Pharmacy, 11(1), 407-415.
- Lau, C.-M., & Ngo, H.-Y. (2004). The HR system, organizational culture, and product innovation. International Business Review, 13(6), 685-703.
- Laursen, K., & Salter, A. (2006). Open for innovation: The role of openness in explaining innovation performance among UK manufacturing firms. Strategic Management Journal, 27(2), 131-150.
- Le, T. T., & Le, P. B. (2023). High-involvement HRM practices stimulate incremental and radical innovation: The roles of knowledge sharing and market turbulence. Journal of Open Innovation: Technology, Market, and Complexity, 9(1), 100006.
- Lockhart, P., Shahani, N. K., & Bhanugopan, R. (2020). Do organisational culture and national culture mediate the relationship between high-performance human resource management practices and organisational citizenship behaviour? International Journal of Manpower, 41(8), 1179-1197.
- Messersmith, J. G., & Wales, W. J. (2013). Entrepreneurial orientation and performance in young firms: The role of human resource management. International Small Business Journal, 31(2), 115-136.
- Naqshbandi, M. M., Meeran, S., & Wilkinson, A. (2023). On the soft side of open innovation: The role of human resource practices, organizational learning culture and knowledge sharing. R&D Management, 53(2), 279-297.
- Obradović, T., Vlačić, B., & Dabić, M. (2021). Open innovation in the manufacturing industry: A review and research agenda. Technovation, 102, 102221.
- OECD. (2022). SME policy index: Western Balkans and Turkey 2022: Assessing the implementation of the small business act for Europe. Paris: OECD Publishing.
- Palumbo, R., Manesh, M. F., Pellegrini, M. M., & Flamini, G. (2022). Setting the conditions for open innovation in the food industry: Unravelling the human dimension of open innovation. British Food Journal, 124(6), 1786-1809.
- Peteraf, M. A. (1993). The cornerstones of competitive advantage: A resource-based view. Strategic Management Journal, 14(3), 179-191.
- Podmetina, D., Soderquist, K. E., Petraite, M., & Teplov, R. (2018). Developing a competency model for open innovation: From the individual to the organisational level. Management Decision, 56(6), 1306-1335.
- Podmetina, D., Volchek, D., Dąbrowska, J., & Fiegenbaum, I. (2013). Human resource practices and open innovation. International Journal of Innovation Management, 17(06), 1340019.
- Popa, S., Soto-Acosta, P., & Martinez-Conesa, I. (2017). Antecedents, moderators, and outcomes of innovation climate and open innovation: An empirical study in SMEs. Technological Forecasting and Social Change, 118, 134-142.
- Quinn, R. E., & Rohrbaugh, J. (1983). A Spatial Model of Effectiveness Criteria: Towards a Competing Values Approach to Organizational Analysis. Management Science, 29(3), 363-377.
- Remneland Wikhamn, B., Styhre, A., & Wikhamn, W. (2023). HRM work and open innovation: Evidence from a case study. The International Journal of Human Resource Management, 34(10), 1940-1972.
- Saunders, M., Philip L., & Adrian Th. (2009). Research methods for business students. Pearson Education.
- Scaliza, J. A. A., Jugend, D., Chiappetta Jabbour, C. J., Latan, H., Armellini, F., Twigg, D., & Andrade, D. F. (2022). Relationships among organizational culture, open innovation, innovative ecosystems, and performance of firms: Evidence from an emerging economy context. Journal of Business Research, 140, 264-279.
- Sikandar, H., & Abdul Kohar, U. H. (2022). A systematic literature review of open innovation in small and medium enterprises in the past decade. Foresight, 24(6), 742-756.
- Skordoulis, M., Ntanos, S., Kyriakopoulos, G. L., Arabatzis, G., Galatsidas, S., & Chalikias, M. (2020). Environmental innovation, open innovation dynamics and competitive advantage of medium and large-sized firms. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 195.
- Song, Z., Gu, Q., & Wang, B. (2019). Creativity-oriented HRM and organizational creativity in China: A complementary perspective of innovativeness. International Journal of Manpower, 40(5), 834-849.
- Spath, D., Nawroth, G., Kurz, L., Keicher, L., & Ohlhausen, P. (2018). Culture-based open innovation approach. A case study of German SME. R&D Management Conference 2018 “R&Designing Innovation: Transformational Challenges for Organizations and Society”. Milan, Italy.
- Spithoven, A., Vanhaverbeke, W., & Roijakkers, N. (2013). Open innovation practices in SMEs and large enterprises. Small Business Economics, 41, 537-562.
- Suttapong, K., Srimai, S., & Pitchayadol, P. (2014). Best practices for building high performance in human resource management. Global Business and Organizational Excellence, 33(2), 39-50.
- Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533.
- Tsai, F.-S., Cabrilo, S., Chou, H.-H., Hu, F., & Tang, A. D. (2022). Open innovation and SME performance: The roles of reverse knowledge sharing and stakeholder relationships. Journal of Business Research, 148, 433-443.
- Usman, M., Roijakkers, N., Vanhaverbeke, W., & Frattini, F. (2018). A systematic review of the literature on open innovation in SMEs. In W. Vanhaverbeke, F. Frattini, N. Roijakkers, & M. Usman (Eds.), Researching Open Innovation in SMEs (pp. 3-35). World Scientific.
- Van De Vrande, V., De Jong, J. P. J., Vanhaverbeke, W., & De Rochemont, M. (2009). Open innovation in SMEs: Trends, motives and management challenges. Technovation, 29(6-7), 423-437.
- West, J., & Bogers, M. (2017). Open innovation: Current status and research opportunities. Innovation, 19(1), 43-50.
- World Bank. (2021). Albania: Country economic memorandum: Background note on supporting an adaptive and resilient labor force (Report No: AUS0002602). World Bank Group.
- Wright, P. M., & McMahan, G. C. (1992). Theoretical perspectives for strategic human resource management. Journal of Management, 18(2), 295-320.
- Wright, P. M., Dunford, B. B., & Snell, S. A. (2001). Human resources and the resource based view of the firm. Journal of Management, 27(6), 701-721.
- Zheng, J., Liu, H., & Zhou, J. (2020). High-performance work systems and open innovation: Moderating role of IT capability. Industrial Management & Data Systems, 120(8), 1441-1457.
- Zhou, Y., Hong, Y., & Liu, J. (2013). Internal commitment or external collaboration? The impact of human resource management systems on firm innovation and performance. Human Resource Management, 52(2), 263-288.