There is a lack of study examining the relationship between high-involvement HRM practice and innovation capability as mediated by knowledge sharing. So, the motivation of this paper is to study and explore potential intermediating roles of explicit and tacit knowledge sharing in linking high-involvement HRM practice and innovation capability under the possible moderator of market turbulence. Analysis of Moment Structures was used to measure validation and test the structural model based on the questionnaire surveys of 333 participators in 119 Vietnamese manufacturing and service enterprises from May to July 2021. The collected data were inspected and analyzed using SPSS and AMOS software version 22. The result advocates the proposed hypotheses relating to the intermediating role of KS in the HRM practices-innovation relationship. It spotlights the crucial character of market turbulence in driving the domination of high-involvement HRM practice on incremental and radical innovation. This paper remarkably increases the insights of the precursor role of high-involvement HRM practice, intermediating mechanism of KS activities, and the regulating influence of market turbulence in predicting and fostering radical and incremental innovation, thereby pushing forward the theory of HRM and innovation management.
Innovation capability is widely accepted as a dynamic competence allowing firms to adjust and evolve their services and products aimed at meeting customers’ needs (Le, 2021; Gui et al., 2022). Accordingly, firms are attempting to improve its innovation capability to succeed in dealing with the external turbulences and environments that might induce negative effects on organizational performances (Cao et al., 2021; Edeh et al., 2022). However, it is an obstacle for organizations in developing and emerging markets to become real innovators rather than imitators due to majority of these firms are medium and small size, with the lack of resources and capital for successful innovation (Lei et al., 2020; Gui et al., 2021). Such situation has required researchers and practitioners to devote more effort to detecting the finer antecedents, new mechanism, and optimal solutions to improve innovation competence for organizations in these nations (Le, 2021; Than et al., 2022). Among the source of predicting innovation capability of firms, scholars highlight the crucial role of human and knowledge capital as the strategic forces for organizations to pursue and improve its innovation competence (Singh et al., 2021; Gui et al., 2022). Consequently, to shed light on the characters and influences of these possible constructs, the paper attempts to elucidate the direct and indirect effects of high-involvement human resource management (HRM) practice on specified forms of innovation capacity that is incremental and radical innovation via the mediators of explicit and tacit knowledge sharing (KS). This study is anticipated to increase the theory and initiatives of innovation management by clarifying the contributions of HRM practices and KS by several reasons.
5.2. Limitations and directions for future research
Besides contributing to improving the understanding of the relationship between latent variables in the research model, the research has certain constraints that require to be overcome. Firstly, the research utilized the cross-sectional approach for testing the relations among the latent factors, so it might not rule out likelihood that the correlations will emerge and change in the long run. A longitudinal study is necessary to address this restriction and confirm the research findings. Second, this study is implemented in a developing country setting, which may have potential implications for research results compared to other research settings. Therefore, the paper recommends that future studies should persist in testing the correlation between the mentioned factors in the new context such as developed countries to clarify and strengthen the research results. Third, literature highlighted open innovation as a holistic approach to innovation management by “systematically encouraging and exploring a wide range of internal and external sources for innovation opportunities, consciously integrating that exploration with firm capabilities and resources, and broadly exploiting those opportunities through multiple channels (West and Gallagher, 2006, p. 2). According to Skordoulis et al. (2020), if open innovation is executed effectively, its dynamics can lead to significant growth for SMEs, even becoming the world leaders. Therefore, future research should explore and clarify the potential role of high-involvement HRM practice in creating a culture that promotes open innovation dynamics. Finally, innovation effort and strategy of organizations in emerging and developing markets tend to be influenced by environmental turbulences and resource-constraints (Le et al., 2022). The paper suggests that future works should focus on exploring available constructs like HRM practices and knowledge resources to promote appropriate innovation models such as frugal innovation to overcome challenges of resource scarcity.
Generally, this paper significantly pushes forward theory of innovation by proffering a complete model to combine high-involvement HRM practice and particular forms of innovation through the mediator of explicit and tacit KS and moderating role of market turbulences. The paper is distinctive and valuable by its efforts in exposing and bringing a deeper insight of a new approach to boost incremental and radical innovation for enterprises in the emerging markets.