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

Year 2022, Volume: 6 Issue: 1, 509 - 538, 29.08.2022
https://doi.org/10.33399/biibfad.1066162

Abstract

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.

References

  • Abdullah, K. M., Mustafa, H. A., Othman, B., & Sadq, Z. M. (2020). The impact of information system on improving academic staff performance of colleges and institutes – a case of Erbil Polytechnic University. Journal of Xi’an University of Architecture & Technology, 12(4), 292-304.
  • Ahmed, Q., Faisal, G., & Falah, H. (2008). The role of the empowerment strategy in improving organizational performance: A study of scientific departments’ heads' perceptions at Tikrit University. Tikrit Journal of Administrative Sciences and Economics, 4(12), 97-111.
  • Akhtar, N., Azeem, S. M., & Mir, G. M. (2014). Impact of HRM practices on perceived organizational performance. International Journal of Academic Research Part B, 6(5), 23-30. DOI: 10.7813/2075-4124.2014/6-5/B.3.
  • Albury, D. (2005). Fostering innovation in public services. Public Money & Management, 25(1), 51-56. DOI: 10.1111/j.1467-9302.2005.00450.x.
  • Alqadi, Ziad, M. (2012). Relationship of HRM Strategies and Performance of Employees and their Impact on Organization Performance: Applied Study in Jordan. Middle East University.
  • Beins, B. C., & McCarthy, M. A. (2018). Research methods and statistics in psychology. Cambridge University Press.
  • Birkinshaw, J. G., &. Hamel, M. J. M. (2008). Management innovation. Academy of Management Review, 33(4), 825-845. https://doi.org/10.5465/amr.2008.34421969.
  • Boxall, P., & Purcell, J. (2011). Strategy and human resource management. London: Palgrave Macmillan.
  • Caliskan, N. (2010). The impact of strategic human resource management on organizational performance. Journal of Naval Science and Engineering, 6(2), 100-116.
  • Chen, C., & Huang, J. (2009). Strategic human resource practices and innovation performance: the mediating role of knowledge management capacity. Journal of Business Research, 62(1), 104-114. doi:10.1016/j.jbusres.2007.11.016.
  • Das, P., Verburg, R., Verbraeck, A., & Bonebakker, L. (2018). Barriers to innovation within large financial services firms: An in-depth study into disruptive and radical innovation projects at a bank. European Journal of Innovation Management, 21(1), 96–112. https://doi.org/10.1108/EJIM-03-2017-0028.
  • Dharmasiri, A. S. (2009). Strategic orientation of HR managers in commercial banks in South Asia. International Review of Business Research Papers, 5(6), 1-21.
  • Farhang, H.S., Abkenari, H. A., & Fadaee, M. (2018). The impact of organizational innovation on the performance of manufacturing firms through innovation capabilities in process and product. Iranian Journal of Optimization, 10(2), 75-80.
  • Gitongu, M. K., Kingi, W., & Uzel, J. M. M. (2016). Determinants of employees’ performance of state parastatals in Kenya: Kenya Ports Authority. International Journal of Humanities and Social Science, 6(10), 197-204.
  • Goyal, S., & Pitt, M. (2007). Determining the role of innovation management in facilities management, available online at emerald.com /insight/ content/ doi/10.1108/ 02632770710716939/full/html, pp.1-13.
  • Hair Jr, J., Sarstedt, M., Hopkins, L.G., & Kuppelwieser, V. (2014). Partial least squares structural equation modeling (PLS-SEM) An emerging tool in business research. European Business Review, 26(2), 106-121.
  • Hargrave, T., & Van de Ven, A. (2006). A collective action model of institutional innovation. Academy of Management Review, 31, 864–888.
  • Hartley, J. (2005). Innovation in governance and public services: past and present. Public Money and Management, 25(1), 27.
  • Heritage, C. (2006). Microsoft: Innovation Through HR’s Partnership: Instilling a Culture of Innovation and Forward-Thinking from Top-down. Strategic HR Review, 5(3), 24-27. https://doi.org/10.1108/14754390680000878.
  • Jabouri, N. I. (2009). The effect of information technology on organizational performance: a study in the state company for electrical industries. Baghdad College of Economic Sciences Journal, 22, 137-166.
  • Johnston, E. Z., Darroch, J., & Matear, S. (2012). Business orientations and innovation in small and medium-sized enterprises. International Entrepreneurship and Management Journal, 8, 145–164. DOI:10.1007/S11365-011-0170-7.
  • Karakaş, A., Öz, Y., & Yildiz, M. R. (2017). The effect of innovation activities on organizational performance: a research on hotel businesses. Journal of Recreation and Tourism Research, 4(1), 49-59.
  • Katou, A. A., & Budhwar, P. S. (2010). Causal relationship between HRM policies and organizational performance: Evidence from the Greek manufacturing sector. European Management Journal, 28(1), 25–39. https://doi.org/10.1016/j.emj.2009.06.001.
  • Koohang, A., Paliszkiewicz, J., & Goluchowski, J. (2017). The impact of leadership on trust, knowledge management, and organizational performance: A research model. Industrial Management & Data Systems, 117(3), 521-537. DOI: 10.1108/IMDS-02-2016-0072.
  • Koser, M., Rasool, S. F., & Samma, M. (2018). The high-performance work system is the accelerator of the best fit and integrated HR practices to achieve the goal of productivity: a case of the textile sector in Pakistan. Global Manage J Acad Corporate Stud. 8(1), 10–21.
  • Koster, F. (2019). Innovative HRM a review of the literature. Journal of Technology Management & Innovation, 14(2), 97-106. https://doi.org/10.4067/S0718-27242019000200097.
  • Kotler, P. (2000). Marketing Management, New Jersey: Prentice-Hall, the USA.
  • Krasnicka, T, Głód W., & Wronka-Pośpiech, M. (2017). Management innovation, pro-innovation organizational culture, and enterprise performance: testing the mediation effect. Review of Managerial Science, 12(3), 737–769. DOI: 10.1007/s11846-017-0229-0.
  • Lin, L. H. (2011). Electronic human resource management, and organizational innovation: the roles of information technology and virtual organizational structure. International Journal of Human Resource Management, 22(2), 235–257. https://doi.org/10.1080/09585192.2011.540149.
  • Mustafa, H. A. (2016). Analysis of the relationship of intellectual capital and organizational learning and its impact on achieving business entrepreneurship in private hospitals in Erbil city. (Unpublished Master Thesis), Business administration, Salahaddin University-Erbil.
  • Rasool, S. F., Samma, M., Wang, M., Zhao, Y., & Zhang, Y. (2019). How human resource management practices translate into sustainable organizational performance: The mediating role of product, process and knowledge innovation. Psychology Research and Behavior Management, 212, 1009–1025.
  • Razavi, S. H., & Attarnezhad, O. (2013). Management of organizational innovation. International Journal of Business and Social Science, 4(1), 226-232. Centre for Promoting Ideas, USA.
  • Rebecca, M., Shatha, O., & Mark, B. (2013). The effect of strategic human resource management on organizational performance: the mediating role of high-performance human resource practices. Human Resource Management, 52(6), 899-921. https://doi.org/10.1002/hrm.21587.
  • Sani, A. D. (2012). Strategic human resource management and organizational performance in the Nigerian insurance industry: the impact of organizational climate. Business Intelligence Journal, 5(1), 8-20.
  • Sarstedt, M., Ringle, Christian M., & Hair, Joseph F. (2017). Partial Least Squares Structural Equation Modeling, Book Chapter, C. Homburg et al. (eds), Handbook of Market Research, Springer International Publishing AG, https://doi.org/10.1007/978-3-319-05542-8_15-1, [accessed, May 12, 2021].
  • Seeck, H., & Diehl, M. R. (2017). A literature review on HRM and innovation–taking stock and future directions. International Journal of Human Resource Management, 28(6), 913–944. https://doi.org/10.1080/09585192.2016.1143862.
  • Shahnaei, S., & Long, C. S. (2015). The review of improving innovation performance through human resource practices in organization performance. Asian Social Science, 11(9), 52-56. DOI:10.5539/ass.v11n9p52.
  • Shahzad, K., Bashir, S., & Ramay M. I. (2008). Impact of HR practices on the perceived performance of university teachers in Pakistan. International Review of Business Research Papers, 4(2), 302-315.
  • Shipton, H., Fay, D., West, M.A., Patterson, M., & Birdi, K. (2005). Managing people to promote innovation. Creativity, and Innovation Management, 14(2), 118-128. https://doi.org/10.1111/j.1467-8691.2005.00332.x
  • Trott, P. (2005). Innovation Management and New Product Development, 3rd Edition, Prentice-Hall, the USA.
  • Volberda, H. W., Van Den Bosch, F. A., & Heij, C. V. (2013). Management innovation: management as fertile ground for innovation. European Management Review, 10(1), 1–15. https://doi.org/10.1111/emre.12007.
  • Werner, S., Schuler, R. S., & Jackson, S. E. (2012). Human Resources Management, 1th Edition. Australia, South.
  • Wong, K-L., Tan, P. S., Ng, Y-K., & Fong C-Y. (2013). The role of HRM in enhancing organizational performance. Human Resource Management Research, 3(1), 11-15. doi:10.5923/j.hrmr.20130301.03.
  • Zhang, Y., Khan, U., Lee, S., & Salik, M. (2019). The influence of management innovation and technological innovation on organization performance. A mediating role of sustainability, Sustainability, 11(495), 1-21. Doi.org/10.3390/su11020495.
  • Zizlavsky, O. (2020). The role of human resource management and group factors in the innovation process, Vision 2020: Innovation, Development Sustainability, and Economic Growth, 667-690.

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

Year 2022, Volume: 6 Issue: 1, 509 - 538, 29.08.2022
https://doi.org/10.33399/biibfad.1066162

Abstract

Bu çalışmanın amacı, insan kaynakları yönetimi stratejileri (İKYS) ile örgütsel araştırma yöntemiyle, performans arasındaki ilişkide örgütsel yeniliğin rolünü, kuzey Irak’taki yatırım kurullarının şubelerinde çalışan yönetici ve çalışanlardan elde edilen deneysel verilere dayanarak araştıran bir model oluşturmaktır. Bu minvalde, nicel araştırma yöntemi kullanılmış ve bu araştırma yöntemiyle, model yapılar arasındaki ilişkiyi ve söz konusu yapıların birbirine olan etkilerinin incelenmesi amaçlanmaktadır. Araştırma hipotezleri, yapısal eşitlik modellemesine dayalı kısmi en küçük kareler yöntemi modeli kullanılarak incelenmiştir. Bulgular, araştırma yapıları arasında doğrudan ve dolaylı ilişki olduğunu göstermektedir. Sonuçlar, insan kaynakları yönetimi stratejilerinin örgütsel yenilik ve örgütsel performans ile aralarında pozitif ve anlamlı bir ilişki olduğunu da göstermektedir. Ayrıca, bulgular örgütsel yeniliğin örgütsel performansın artmasıyla olumlu ve anlamlı bir şekilde ilişkili olduğunu ortaya koymmaktadır. Mevcut araştırma, örgütsel yeniliğin İKYS ile örgütsel performans arasındaki ilişkiye aracılık ettiğini göstererek literatürün geliştirilmesine katkıda bulunacaktır. Örgütsel yenilik, özellikle organizasyonlar için performanslarını iyileştirmeyi ve rekabet gücünü korumayı hedef haline getirmelerini zorunluluk haline getirmektedir. Diğer bir sonuca göre, organizasyonlar, insan kaynaklarındaki inovasyonlar sayesinde, tamamıyla insan faktörlerine ağırlık verebilirler ve böylelikle örgütsel performanslarını iyileştirebilirler. Buna ilaveten, bulgular, örgütsel yeniliğin İKYS ile örgütsel performans arasındaki ilişkiye kısmen etki ettiğini göstermektedir.

References

  • Abdullah, K. M., Mustafa, H. A., Othman, B., & Sadq, Z. M. (2020). The impact of information system on improving academic staff performance of colleges and institutes – a case of Erbil Polytechnic University. Journal of Xi’an University of Architecture & Technology, 12(4), 292-304.
  • Ahmed, Q., Faisal, G., & Falah, H. (2008). The role of the empowerment strategy in improving organizational performance: A study of scientific departments’ heads' perceptions at Tikrit University. Tikrit Journal of Administrative Sciences and Economics, 4(12), 97-111.
  • Akhtar, N., Azeem, S. M., & Mir, G. M. (2014). Impact of HRM practices on perceived organizational performance. International Journal of Academic Research Part B, 6(5), 23-30. DOI: 10.7813/2075-4124.2014/6-5/B.3.
  • Albury, D. (2005). Fostering innovation in public services. Public Money & Management, 25(1), 51-56. DOI: 10.1111/j.1467-9302.2005.00450.x.
  • Alqadi, Ziad, M. (2012). Relationship of HRM Strategies and Performance of Employees and their Impact on Organization Performance: Applied Study in Jordan. Middle East University.
  • Beins, B. C., & McCarthy, M. A. (2018). Research methods and statistics in psychology. Cambridge University Press.
  • Birkinshaw, J. G., &. Hamel, M. J. M. (2008). Management innovation. Academy of Management Review, 33(4), 825-845. https://doi.org/10.5465/amr.2008.34421969.
  • Boxall, P., & Purcell, J. (2011). Strategy and human resource management. London: Palgrave Macmillan.
  • Caliskan, N. (2010). The impact of strategic human resource management on organizational performance. Journal of Naval Science and Engineering, 6(2), 100-116.
  • Chen, C., & Huang, J. (2009). Strategic human resource practices and innovation performance: the mediating role of knowledge management capacity. Journal of Business Research, 62(1), 104-114. doi:10.1016/j.jbusres.2007.11.016.
  • Das, P., Verburg, R., Verbraeck, A., & Bonebakker, L. (2018). Barriers to innovation within large financial services firms: An in-depth study into disruptive and radical innovation projects at a bank. European Journal of Innovation Management, 21(1), 96–112. https://doi.org/10.1108/EJIM-03-2017-0028.
  • Dharmasiri, A. S. (2009). Strategic orientation of HR managers in commercial banks in South Asia. International Review of Business Research Papers, 5(6), 1-21.
  • Farhang, H.S., Abkenari, H. A., & Fadaee, M. (2018). The impact of organizational innovation on the performance of manufacturing firms through innovation capabilities in process and product. Iranian Journal of Optimization, 10(2), 75-80.
  • Gitongu, M. K., Kingi, W., & Uzel, J. M. M. (2016). Determinants of employees’ performance of state parastatals in Kenya: Kenya Ports Authority. International Journal of Humanities and Social Science, 6(10), 197-204.
  • Goyal, S., & Pitt, M. (2007). Determining the role of innovation management in facilities management, available online at emerald.com /insight/ content/ doi/10.1108/ 02632770710716939/full/html, pp.1-13.
  • Hair Jr, J., Sarstedt, M., Hopkins, L.G., & Kuppelwieser, V. (2014). Partial least squares structural equation modeling (PLS-SEM) An emerging tool in business research. European Business Review, 26(2), 106-121.
  • Hargrave, T., & Van de Ven, A. (2006). A collective action model of institutional innovation. Academy of Management Review, 31, 864–888.
  • Hartley, J. (2005). Innovation in governance and public services: past and present. Public Money and Management, 25(1), 27.
  • Heritage, C. (2006). Microsoft: Innovation Through HR’s Partnership: Instilling a Culture of Innovation and Forward-Thinking from Top-down. Strategic HR Review, 5(3), 24-27. https://doi.org/10.1108/14754390680000878.
  • Jabouri, N. I. (2009). The effect of information technology on organizational performance: a study in the state company for electrical industries. Baghdad College of Economic Sciences Journal, 22, 137-166.
  • Johnston, E. Z., Darroch, J., & Matear, S. (2012). Business orientations and innovation in small and medium-sized enterprises. International Entrepreneurship and Management Journal, 8, 145–164. DOI:10.1007/S11365-011-0170-7.
  • Karakaş, A., Öz, Y., & Yildiz, M. R. (2017). The effect of innovation activities on organizational performance: a research on hotel businesses. Journal of Recreation and Tourism Research, 4(1), 49-59.
  • Katou, A. A., & Budhwar, P. S. (2010). Causal relationship between HRM policies and organizational performance: Evidence from the Greek manufacturing sector. European Management Journal, 28(1), 25–39. https://doi.org/10.1016/j.emj.2009.06.001.
  • Koohang, A., Paliszkiewicz, J., & Goluchowski, J. (2017). The impact of leadership on trust, knowledge management, and organizational performance: A research model. Industrial Management & Data Systems, 117(3), 521-537. DOI: 10.1108/IMDS-02-2016-0072.
  • Koser, M., Rasool, S. F., & Samma, M. (2018). The high-performance work system is the accelerator of the best fit and integrated HR practices to achieve the goal of productivity: a case of the textile sector in Pakistan. Global Manage J Acad Corporate Stud. 8(1), 10–21.
  • Koster, F. (2019). Innovative HRM a review of the literature. Journal of Technology Management & Innovation, 14(2), 97-106. https://doi.org/10.4067/S0718-27242019000200097.
  • Kotler, P. (2000). Marketing Management, New Jersey: Prentice-Hall, the USA.
  • Krasnicka, T, Głód W., & Wronka-Pośpiech, M. (2017). Management innovation, pro-innovation organizational culture, and enterprise performance: testing the mediation effect. Review of Managerial Science, 12(3), 737–769. DOI: 10.1007/s11846-017-0229-0.
  • Lin, L. H. (2011). Electronic human resource management, and organizational innovation: the roles of information technology and virtual organizational structure. International Journal of Human Resource Management, 22(2), 235–257. https://doi.org/10.1080/09585192.2011.540149.
  • Mustafa, H. A. (2016). Analysis of the relationship of intellectual capital and organizational learning and its impact on achieving business entrepreneurship in private hospitals in Erbil city. (Unpublished Master Thesis), Business administration, Salahaddin University-Erbil.
  • Rasool, S. F., Samma, M., Wang, M., Zhao, Y., & Zhang, Y. (2019). How human resource management practices translate into sustainable organizational performance: The mediating role of product, process and knowledge innovation. Psychology Research and Behavior Management, 212, 1009–1025.
  • Razavi, S. H., & Attarnezhad, O. (2013). Management of organizational innovation. International Journal of Business and Social Science, 4(1), 226-232. Centre for Promoting Ideas, USA.
  • Rebecca, M., Shatha, O., & Mark, B. (2013). The effect of strategic human resource management on organizational performance: the mediating role of high-performance human resource practices. Human Resource Management, 52(6), 899-921. https://doi.org/10.1002/hrm.21587.
  • Sani, A. D. (2012). Strategic human resource management and organizational performance in the Nigerian insurance industry: the impact of organizational climate. Business Intelligence Journal, 5(1), 8-20.
  • Sarstedt, M., Ringle, Christian M., & Hair, Joseph F. (2017). Partial Least Squares Structural Equation Modeling, Book Chapter, C. Homburg et al. (eds), Handbook of Market Research, Springer International Publishing AG, https://doi.org/10.1007/978-3-319-05542-8_15-1, [accessed, May 12, 2021].
  • Seeck, H., & Diehl, M. R. (2017). A literature review on HRM and innovation–taking stock and future directions. International Journal of Human Resource Management, 28(6), 913–944. https://doi.org/10.1080/09585192.2016.1143862.
  • Shahnaei, S., & Long, C. S. (2015). The review of improving innovation performance through human resource practices in organization performance. Asian Social Science, 11(9), 52-56. DOI:10.5539/ass.v11n9p52.
  • Shahzad, K., Bashir, S., & Ramay M. I. (2008). Impact of HR practices on the perceived performance of university teachers in Pakistan. International Review of Business Research Papers, 4(2), 302-315.
  • Shipton, H., Fay, D., West, M.A., Patterson, M., & Birdi, K. (2005). Managing people to promote innovation. Creativity, and Innovation Management, 14(2), 118-128. https://doi.org/10.1111/j.1467-8691.2005.00332.x
  • Trott, P. (2005). Innovation Management and New Product Development, 3rd Edition, Prentice-Hall, the USA.
  • Volberda, H. W., Van Den Bosch, F. A., & Heij, C. V. (2013). Management innovation: management as fertile ground for innovation. European Management Review, 10(1), 1–15. https://doi.org/10.1111/emre.12007.
  • Werner, S., Schuler, R. S., & Jackson, S. E. (2012). Human Resources Management, 1th Edition. Australia, South.
  • Wong, K-L., Tan, P. S., Ng, Y-K., & Fong C-Y. (2013). The role of HRM in enhancing organizational performance. Human Resource Management Research, 3(1), 11-15. doi:10.5923/j.hrmr.20130301.03.
  • Zhang, Y., Khan, U., Lee, S., & Salik, M. (2019). The influence of management innovation and technological innovation on organization performance. A mediating role of sustainability, Sustainability, 11(495), 1-21. Doi.org/10.3390/su11020495.
  • Zizlavsky, O. (2020). The role of human resource management and group factors in the innovation process, Vision 2020: Innovation, Development Sustainability, and Economic Growth, 667-690.
There are 45 citations in total.

Details

Primary Language English
Subjects Economics, Business Administration
Journal Section Makaleler
Authors

Zandi Jabbar 0000-0002-4080-9774

Sait Patır

Early Pub Date August 29, 2022
Publication Date August 29, 2022
Submission Date March 2, 2022
Published in Issue Year 2022 Volume: 6 Issue: 1

Cite

APA Jabbar, Z., & Patır, S. (2022). Mediating Role of Organizational Innovation in the Relationship between Human Resources Management Strategies and Organizational Performance Empirical Evidence from Iraq. Bingöl Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi, 6(1), 509-538. https://doi.org/10.33399/biibfad.1066162


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