Mediating Role of Organizational Innovation in the Relationship between Human Resources Management Strategies and Organizational Performance Empirical Evidence from Iraq

This research aims to build a model that explores the mediating role of organizational innovation in the relationship between human resources management strategies (HRMS) and organizational performance based on empirical data obtained from managers and employees working for the branches of investment boards in northern Iraq. The quantitative research method was used, and the research methodology was aimed to develop the relationship and influence between the model structures. The research hypotheses were examined using partial least squares path modeling based on structural equation modeling (SEM). The findings showed direct and indirect relationships between research constructs. Results showed that human resources management strategies positively and significantly related to organizational innovation and organizational performance. Organizational innovation becomes a necessity, particularly when organizations want to improve their performance and maintain competitiveness. Organizations can focus on all their human elements through innovation in human resources and thus improve organizational performance. In addition, the results presented that organizational innovation is positively and significantly related to enhancing organizational performance. The current research will contribute to enhancing the literature by representing that organizational innovation mediates the relationship between HRMS and organizational performance. Furthermore, results showed that organizational innovation partially mediated the relationship between HRMS and organizational performance.