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How New HRM Practices, Organizational Innovation, and Innovative Climate Affect the Innovation Performance in the IT Industry: A Moderated-Mediation Analysis

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  • Abdul Waheed

    (School of Management, Northwestern Polytechnical University, 127 West Youyi Road, Beilin District, Xi’an 710072, China)

  • Xiaoming Miao

    (School of Management, Northwestern Polytechnical University, 127 West Youyi Road, Beilin District, Xi’an 710072, China)

  • Salma Waheed

    (School of Psychology, Shaanxi Normal University, Yanta Campus, Xi’an 710072, China)

  • Naveed Ahmad

    (School of Management, Northwestern Polytechnical University, 127 West Youyi Road, Beilin District, Xi’an 710072, China)

  • Abdul Majeed

    (School of Management, University of Lahore, City Campus, Lahore 54000, Pakistan)

Abstract

Considering the cutthroat competition in IT organizations, public and state-based organizations are trying to develop strategies to promote innovation in the organizations. However, due to monopolistic structure, employee rigidness, and lack of innovation climate, employees are reluctant to perform innovatively in such organizations. New HRM practices (NHRM) can enrich the talented, motivated, committed, and innovative staff to enhance innovation. However, empirical evidence to prove this relationship is insufficient. Therefore, this study aims to analyze the effect of NHRM practices on innovation performance with the mediating role of organizational innovation and the moderating role of the innovation climate. Data collected from semi-government IT-based organizations provide results that there is a significant positive relationship between NHRM practices and innovation performance. The mediating role of organizational innovation was also found. Moreover, the results of the moderated-mediation show that the mediating role of organizational innovation is also strong if the organizational climate is more innovative. These results provide managerial guidelines to promote NHRM practices to enhance innovation performance in the semi-government IT-based organizations of Pakistan.

Suggested Citation

  • Abdul Waheed & Xiaoming Miao & Salma Waheed & Naveed Ahmad & Abdul Majeed, 2019. "How New HRM Practices, Organizational Innovation, and Innovative Climate Affect the Innovation Performance in the IT Industry: A Moderated-Mediation Analysis," Sustainability, MDPI, vol. 11(3), pages 1-21, January.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:3:p:621-:d:200649
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