Journal article

HRM and innovation: the mediating role of market-sensing capability and the moderating role of national power distance

Cai-Hui Veronica Lin, Karin Sanders, Jian-Min James Sun, Helen Shipton, Erik A Mooi

The International Journal of Human Resource Management | Taylor & Francis (Routledge) | Published : 2020


This paper examines the mechanism through which HRM practices promote firms’ innovation and how this relationship differs across cultures. Based on a data-set of 3755 firms from 13 countries, this study finds that in most countries employee-oriented HRM practices that dedicate attention to employee needs and interests are positively related to firms’ market-sensing capability, which is the capability to continuously learn about their markets. Market-sensing capability is in turn significantly related to firms’ product and process innovation. Cross-country examination further reveals that in high power distance countries employee-oriented HRM practices have a stronger positive effect than in ..

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University of Melbourne Researchers