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Why Not Knowledge-Based HRM? Its Direct and Indirect Effect on Innovative Service Offerings

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  • Norwan Ahmad
  • Ng Siew Imm
  • Yuhanis Abdul Aziz
  • Norazlyn Kamal Basha

Abstract

This article is aimed at examining the effect, direct and indirect, of knowledge-based human resource management on innovative offerings of service small and medium-sized enterprises (SMEs). Knowledge-based human resource management essentially reflects the central role played by the embedded knowledge-centric human resource management practices, which may lead to new or improved services. A cross-sectional survey was implemented involving a sample of 278 business service SMEs from Malaysia and indicated two key findings from the study. First, knowledge-based human resource management was found to positively influence innovative service offerings. Second, dynamic capability in the aspects of entrepreneurial orientation, marketing capability, and technological capability were found to mediate the knowledge-based human resource management–innovative service offerings relationship. This study espouses the potentials of creating innovative service offerings among business service SMEs through embedding knowledge perspective in human resource management practices as well as investment in dynamic capabilities.

Suggested Citation

  • Norwan Ahmad & Ng Siew Imm & Yuhanis Abdul Aziz & Norazlyn Kamal Basha, 2020. "Why Not Knowledge-Based HRM? Its Direct and Indirect Effect on Innovative Service Offerings," SAGE Open, , vol. 10(4), pages 21582440209, December.
    • Handle: RePEc:sae:sagope:v:10:y:2020:i:4:p:2158244020983003
    DOI: 10.1177/2158244020983003
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