The Role of Human Resources in Stimulating Entrepreneurial Culture: The Moderating Effect of Innovation

This study investigated how human resource (HR) practices influence entrepreneurial culture, moderated by innovation, in small and medium enterprises (SMEs) in Saudi Arabia.A survey was administered to 374 HR managers.The results revealed HR practices positively affects entrepreneurial culture, with performance management exerting the strongest effect.Innovation was also found to significantly moderate the HR practicesentrepreneurial culture relationship.The findings suggest SMEs should leverage HR initiatives like training, rewards, and knowledge sharing to stimulate an entrepreneurial environment, with innovation integrated into these efforts.Theoretically, the study expands understanding of fostering entrepreneurial culture through HR practices and the role of innovation in enabling this link.For practice, it provides guidance to HR managers on effectively designing policies and procedures to nurture entrepreneurial thinking and behaviors, a crucial capability for SME agility and growth.The use of a cross-sectional survey methodology means the dynamics between the variables could not be fully captured.Additionally, the sample was restricted to Saudi Arabian SMEs.Further research could employ longitudinal or qualitative approaches, examine other relevant individual and organizational factors, and extend the context.Overall, this study offers timely insights on strengthening entrepreneurial culture via supportive HR systems and innovation-focused management.