HRM Practices and Innovation Management—Mediating Role of Knowledge Sharing: Evidence from UAE ICT Industry

Abstract

This study has two objectives: to examine the impact of Human Resource Management (HRM) practices on Knowledge Sharing (KS) and Innovation Performance (IP) in the United Arab Emirates (UAE) and to test the mediating impact of KS in the relationship between HRM Practices and IP. Data were collected from 500 employees working in three organizations operating in the Information and Communication Technology industry in Abu Dhabi. A structured questionnaire containing standard scales of HRM practices, KS, IP, and some demographic variables was used. After testing the scales’ reliability and validity, the proposed relationships were tested via structural equation modeling using SmartPLS. Proposed mediation hypotheses were tested using the Sobel test. The study revealed that HRM practices were positively related to KS and IP. In addition, KS was found to fully mediate the relationship between HRM practices and IP. The study has implications for enhancing IP. In general, enhancing the effectiveness of HRM practices can result in higher levels of IP. Moreover, managers should promote KS among employees in order to enhance the impact of HRM practices on IP. In addition, UAE managers should provide employees with effective training programs, performance appraisals, and reward systems to promote KS that will lead to higher levels of IP. This study is considered one of the first studies conducted in the Middle East to examine the impact of HRM practices and KS on IP. Moreover, the study is among the first studies to examine the mediating effects of KS in the relationship between HRM practices and IP in the non-western context of UAE.