Mediating Role of Innovation Orientation on the High-Commitment Hr Practices–performance Relationship

Purpose — Human resource (HR) practices serve as blueprints to organisational cultures. Prior research demonstrates that creative–innovative organisations are better able to adapt to environmental pressures and outlive their competitors. However, the innovation orientation construct has received little attention. The paper aims to explore how individual perceptions of innovation orientation mediate the high-commitment HR practices–performance relationship. We draw upon social exchange theory to explain how employees perceive organisational practices and respond with innovative work behaviours. Design/methodology/approach — We examine how individual perceptions of innovation orientation and creativity climate mediate the HR practices–performance relationship. 379 “management level” employees working for publicly listed firms are surveyed on their perceptions of creativity climate, innovation orientation, subjective performance and four high-commitment HR practices. Findings — Across both mediated pathways, all high-commitment HR practices are significant predictors of performance except for compensation practices. Our findings align with prior research suggesting that extrinsic motivators may be detrimental to intrinsic motivation. Research limitations/implications — We acknowledge the limitations of cross-sectional data, publicly listed firms, and single-respondent data collected within our study. Practical implications — HR managers should pay careful consideration to how employees perceive high commitment practices when encouraging innovative work behaviours. Extrinsic motivators may be detrimental to intrinsic motivation when seeking to optimise innovative work behaviours. Originality/value — This paper explores individual perceptions of innovative orientation and its mediating role in the high-commitment HR practices–performance relationship. It is the first to do so simultaneously with a creative climate.