The mediating role of innovation in the relationship between high-performance human resource management practices and firm performance

Duy-Thanh Nguyen; Trung Kien Dao

doi:10.1016/j.heliyon.2023.e22720

The mediating role of innovation in the relationship between high-performance human resource management practices and firm performance

Heliyon. 2023 Nov 28;9(12):e22720. doi: 10.1016/j.heliyon.2023.e22720. eCollection 2023 Dec.

Authors

Duy-Thanh Nguyen¹, Trung Kien Dao²

Affiliations

¹ Hanoi School of Business and Management, Vietnam National University Hanoi, Add: 144 Xuan Thuy Street, Dich Vong Hau, Cau Giay, Ha Noi, Viet Nam.
² Faculty of Business and Economics, Phenikaa University, Add: to Huu, Yen Nghia, Ha Dong, Ha Noi, Viet Nam.

Abstract

The study aims to evaluate the impacts of high-performance human resource management practices on firm performance through the mediating variable of innovation. The research model was developed and integrated from high-performance human resource management theory, innovation, and firm performance. The analysis results from 312 enterprises in industrial and service sectors indicated that high-performance human resource management practices had an indirect impact on firm performance and a direct effect on innovation. Furthermore, innovation plays a mediating role in the relationship between high-performance human resource management practices and firm performance. In addition, organizational size is also a characteristic variable that impacts firm performance. Finally, the study provides some theoretical and practical implications for managers to improve enterprises' human resource management systems.

Keywords: Firm performance; High-performance human resource management; Innovation; Resource-based view.