Interplay between innovation-oriented HRM and leadership to promote intrapreneurial behavior for innovation performance in small- and medium-sized enterprises

Muhammad Athar Rasheed, Natasha Saman Elahi, Qasim Ali Nisar and Nadia Nasir

Evidence-based HRM, 2025, vol. 14, issue 1, 68-86

Abstract: PurposeDrawing on ability-motivation-opportunity (AMO) framework, this study investigates the direct effect of innovation-oriented HRM on SMEs’ innovation performance, both directly and through intrapreneurial behavior. Besides, the study assesses the moderating role of innovation-oriented leadership in the relationship between innovation-oriented HRM and intrapreneurial behavior.Design/methodology/approachA two-wave dataset collected from 183 SMEs was used to test the proposed hypotheses by partial least squares structural equation modeling (PLS-SEM).FindingsFindings suggest that innovation-oriented HRM positively impacts SMEs’ innovation performance directly and through intrapreneurial behavior. Evidence also confirms that innovation-oriented leadership positively moderates the effect of innovation-oriented HRM on intrapreneurial behavior.Research limitations/implicationsThrough the AMO framework, this study advances our understanding of how the interaction between innovation-oriented HRM and leadership fosters intrapreneurial behavior, ultimately contributing to superior innovation performance in SMEs.Practical implicationsThe study recommends that SMEs implement innovation-oriented HRM practices to encourage intrapreneurial behavior and achieve superior innovation performance in SMEs.Originality/valueLimited research has addressed the contributions of innovation-oriented HRM and leadership toward realizing strategic innovation objectives. Our study offers valuable insights into the functions of innovation-oriented HRM and leadership in stimulating intrapreneurial behavior, thereby enhancing the innovation performance of SMEs.

Keywords: Innovation-oriented HRM; Innovation-oriented leadership; Intrapreneurial behavior; Innovation performance; SMEs (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ebhrmp:ebhrm-05-2024-0183

DOI: 10.1108/EBHRM-05-2024-0183

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