Relationship Between Innovation-led HR Policy, Strategy and Firm Performance: A Serial Mediation Investigation

Pawan S Budhwar, Hoa Do, charmi patel

Research output: Contribution to journalArticlepeer-review

Abstract

This research examines the relationship between innovation-led strategy and innovation-led HR policy (hereafter, management initiatives), and innovation performance. Our research model is theorised and tested in the Vietnamese context, based on servant leadership theory and componential theory of creativity. We draw upon constructs of management initiatives, servant leadership, employee creativity, and firm innovation to hypothesize serial mediation mechanisms linking management initiatives to firm performance. Using a multilevel sample of 56 service firms, we conduct multilevel path analyses. We find that (1) individual-level servant leadership mediates the top-down relationship between management initiatives and employee creativity; (2) employee creativity mediates the bottom-up relationship between individual-level servant leadership and firm-level innovation; and (3) firm-level innovation mediates the bottom-up relationship between employee creativity and firm-level market performance. We conclude by discussing both theoretical and practical implications.
Original languageEnglish
Pages (from-to)1271-1284
JournalHuman Resource Management
Volume57
Issue number5
Early online date9 Mar 2018
DOIs
Publication statusPublished - Sep 2018

Bibliographical note

Copyright © 2018 by John Wiley & Sons. This is the peer reviewed version of the following article: Relationship Between Innovation-led HR Policy, Strategy and Firm Performance: A Serial Mediation Investigation Budhwar, P. S., Do, H. & patel, C. 9 Mar 2018 In : Human Resource Management., which has been published in final form at https://doi.org/10.1002/hrm.21903. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.

Keywords

  • Innovation Strategy Execution
  • Innovation-led HR Policy
  • Management Initiatives
  • Servant Leadership Theory
  • Componential Theory of Creativity
  • Employee Creativity
  • Innovation

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