How Human Resource Management Practices Translate Into Sustainable Organizational Performance: The Mediating Role Of Product, Process And Knowledge Innovation
Authors Rasool SF, Samma M, Wang M, Zhao Y, Zhang Y
Received 9 February 2019
Accepted for publication 25 September 2019
Published 1 November 2019 Volume 2019:12 Pages 1009—1025
Checked for plagiarism Yes
Review by Single-blind
Peer reviewer comments 3
Editor who approved publication: Professor Mei-chun Cheung
Samma Faiz Rasool,1–3 Madeeha Samma,3 Mansi Wang,2,4 Yan Zhao,3 Yanping Zhang2,4
1Postdoctoral Station of Statistical, Guangzhou University, Guangzhou 510006, People’s Republic of China; 2School of Innovation and Entrepreneurship, Entrepreneurship Institute, Guangzhou University, Guangzhou 510006, People’s Republic of China; 3School of Management, Shanghai University, Shanghai 200444, People’s Republic of China; 4School of Management, Guangzhou University, Guangzhou 510006, People’s Republic of China
Correspondence: Mansi Wang
School of Innovation and Entrepreneurship, Entrepreneurship Institute, Guangzhou University, Guangzhou 510006, People’s Republic of China
School of Management, Shanghai University, Shanghai 200444, People’s Republic of China
Tel +86 13917262801
Background: This study examined how human resource management (HRM) can directly and indirectly influence sustainable organizational performance (SOP), with organizational innovation (OI) as a mediator.
Research methods: For this quantitative study, a 31-item questionnaire was used to collect data on HRM and SOP from 20 Shanghai branches of five Chinese banks. HRM was defined as multidimensional, consisting of employee staffing, staff development, performance management, and compensation and benefits. Partial least squares structural equation modeling (PLS-SEM 3.2) was used to estimate the effects.
Results: The HRM practices of performance management and compensation and benefits showed a direct and positive influence on SOP. Looking at indirect relationships, all four dimensions of HRM practices were positively related to OI (product, process, and knowledge innovation), which, in turn, was positively related to SOP. Organizational innovation was thus shown to play a mediating role between HRM and SOP.
Conclusion: The study emphasizes that the banking sector of China consists of many employees who maintain old styles of working, alongside some who attempt to take on the new innovative working mechanisms and engage with staff development programs. This latter group of personnel make a valuable contribution to SOP. Moreover, the effect on organizational dynamics of implementing HRM practices aids in bringing about innovations in processes, products, and knowledge.
Keywords: human resource management practices, organizational innovation, sustainable organizational performance
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