High-Performance Work System and Innovation Capabilities: The Mediating Role of Intellectual Capital

Hafiz Ali Javed, Naveed Ahmad Khan, Silke Michalk, Noor Ullah Khan () and Muhammad Kamran
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Hafiz Ali Javed: International Business School, Teesside University, Middlesbrough TS1 3BX, UK
Naveed Ahmad Khan: Faculty of Business Administration, Brandenburgh University of Technology, 03046 Cottbus, Germany
Silke Michalk: Faculty of Business Administration, Brandenburgh University of Technology, 03046 Cottbus, Germany
Noor Ullah Khan: Malaysian Graduate School of Entrepreneurship and Business (MGSEB), Universiti Malaysia Kelantan (UMK), Taman Bendahara, Pengkalan Chepa 16100, Malaysia
Muhammad Kamran: Wyższa Szkoła Gospodarki Euroregionalnej im. Alcide De Gasperi, 05-410 Jozefow, Poland

Administrative Sciences, 2023, vol. 13, issue 1, 1-19

Abstract: This study examined the effect of high-performance work systems on developing incremental and radical innovation capabilities. Drawing on resource-based and knowledge-based theories, the mediating effects of human capital, social capital, and organizational capital were tested. Data were collected from 233 middle-to-senior level managers working in the banking sector of Pakistan, and hypotheses were tested through partial least squares structural equation modeling using Smart PLS 4.0. The findings showed that all components of intellectual capital mediated the relationship to develop both types of innovation capabilities. In terms of the strength of the relationship, social capital was found to be a more effective mediator, and next to this were human capital and organizational capital, respectively. Our findings contribute to the existing literature by explaining the relationship between HPWS and innovation capabilities, which is also referred to as the black box through the mediation of intellectual capital. Decision makers should recognize the importance of this relationship because it develops innovation capabilities that enhance organizational performance by giving them a competitive advantage.

Keywords: high-performance work system; human capital; social capital; organizational capital; incremental innovation capability; radical innovation capability (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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