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MNEs’ Subsidiary HRM Practices and Firm Innovative Performance: A Tacit Knowledge Approach

Author

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  • Rong Li

    (School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, China)

  • Yi-Fei Du

    (School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, China)

  • Hong-Juan Tang

    (School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, China)

  • Francis Boadu

    (School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, China)

  • Min Xue

    (School of Management, China West Normal University, Nanchong 637009, China)

Abstract

Although there is a general recognition that human resource management (HRM) practices are a key factor in a firm’s innovation performance, from the extant literature we see that empirical investigation does not always offer evidence to support this assertion. This paper proposes that knowledge transfer received positively moderates the link between HRM practices and firm innovative performance in foreign multinational enterprises (MNEs) subsidiaries operating in China. Specifically, the influence of tacit knowledge approach on the effects of knowledge transfer received on HRM practices and firm innovative performance. With hierarchical linear modeling, our results demonstrate that: (1) HRM practices can have a positive effect on firm innovative performance; (2) knowledge transfer received can positively moderate the effects of HRM practices and firm innovative performance; and (3) the positive effects of knowledge transfer received on HRM practices and firm innovative performance will be strengthened with a tacit knowledge approach. This paper shows that through the adaptation and application of a tacit knowledge approach, executives can create an atmosphere for interaction between the workforce and senior colleagues, forming an inter-intra network chain to share intangible knowledge that is mostly derived from the culture and experience.

Suggested Citation

  • Rong Li & Yi-Fei Du & Hong-Juan Tang & Francis Boadu & Min Xue, 2019. "MNEs’ Subsidiary HRM Practices and Firm Innovative Performance: A Tacit Knowledge Approach," Sustainability, MDPI, vol. 11(5), pages 1-18, March.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:5:p:1388-:d:211451
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    References listed on IDEAS

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    Cited by:

    1. Mohammad Bin Amin & Mohammad Rabiul Basher Rubel, 2020. "Human resource management practices and employee knowledge sharing behavior: Mediating role of knowledge sharing intention," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 10(5), pages 150-164, May.

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