The Importance of HRM System, Absorptive Capacity, And Innovative Performance in Jordanian SMEs: A Proposed Conceptual Framework
Main Article Content
Abstract
Purpose: In this competitive era, innovative performance is necessary for SMEs to maintain their competitive advantage. Innovative performance results from leveraging opportunities for creativity, value building via resources and capabilities, as well as the combination of effective internal and external knowledge structures. As such, this study proposes a model to explore the relationships between human resource management (HRM) system and absorptive capacity (AC), and their impact on innovative performance (IP) in Jordanian SMEs.
Design/methodology/approach: A range of relevant literature is explored and a conceptual model is proposed and discussed.
Findings – This paper proposes an answer to “how” the HRM system can influence the innovative performance of SMEs. It is also suggested that the HRM system play a unique role in creating AC, which leads to superior innovative performance for SMEs in Jordan.
Practical implication: The paper can help SME managers in Jordan to understand better the importance of the HRM system and AC. Through the integration of these two resources, superior and sustainable innovative performance can be achieved.
Originality/value: The Ability-Motivation-Opportunity (AMO) and Resource-based View (RBV) theories were utilised to delineate the topic at hand. Essentially, this study adds to the body of knowledge and offers an insight pertaining to the impact of the HRM system on innovative performance, as well as the configuration of the HRM system within the context of Jordanian SMEs.