Enhancing firm innovativeness through HRM practices: the mediating role of innovation capability

Abstract

Purpose This paper aims to investigate the influence of human resource management (HRM) practices on the level of innovativeness observed within the service sector of Ghana, taking into account the potential mediating role of innovation capability. Design/methodology/approach The research used a quantitative methodology to fulfill the study's objectives. A Web-based survey questionnaire was designed to gather data from a sample of 168 respondents, selected through a convenient sampling technique. The proposed model was tested using the Process Macro Model 4 by Hayes in SPSS version 26. Findings The study’s outcomes indicate that there is no statistically significant correlation between HRM practices and firm innovativeness. However, the mediating role of innovation capability was observed to fully account for the relationship between human HRM practices and firm innovativeness. Additionally, a positive and significant association was identified between HRM practices and innovation capability, as well as between innovation capability and firm innovativeness. Research limitations/implications It is important to note that the findings are limited to the perspective of employees within the service sector of Ghana. Therefore, future research could explore the manufacturing and/or extraction industries in Ghana to obtain a more comprehensive understanding. Furthermore, a larger sample size could be considered in future studies. Originality/value To the best of the authors’ knowledge, this study presents a novel examination of the hypothesized model within the Ghanaian context, providing valuable insights into the relationship between HRM practices, innovation capability and firm innovativeness.