Studies have demonstrated the role of human resource management (HRM) practices and knowledge management processes (KMPs) in innovative performance. However, there is limited focus on the role of HRM practices in facilitating KMPs in organizations, most especially in small and medium enterprises (SMEs) that are constrained by lack of adequate resources, making them dependent on external sources of knowledge. In addressing this gap, this study aims to investigate the link between knowledge-based HRM practices and open innovation (OI) activities through KMPs in Jordanian SMEs.
Following the survey method, 500 manufacturing SMEs in Jordan were randomly selected as participants, with a total of 335 responses collated. The structural equation modeling technique, based on AMOS, was used in analyzing the collected data.
The findings revealed a significant positive relationship between knowledge-based HRM practices and OI. In addition, KMPs was determined to be a significant mediator of the relationship between knowledge -based HRM practices and OI.
The study contributes to the literature by emphasizing the organizational elements that boost OI in SMEs. The findings hold significant implications for enhancing the performance of innovativeness, competitiveness and the socioeconomic advancement in the SMEs sector.
