Interplay between innovation-oriented HRM and leadership to promote intrapreneurial behavior for innovation performance in small- and medium-sized enterprises

Purpose Drawing on ability-motivation-opportunity (AMO) framework, this study investigates the direct effect of innovation-oriented HRM on SMEs’ innovation performance, both directly and through intrapreneurial behavior. Besides, the study assesses the moderating role of innovation-oriented leadership in the relationship between innovation-oriented HRM and intrapreneurial behavior. Design/methodology/approach A two-wave dataset collected from 183 SMEs was used to test the proposed hypotheses by partial least squares structural equation modeling (PLS-SEM). Findings Findings suggest that innovation-oriented HRM positively impacts SMEs’ innovation performance directly and through intrapreneurial behavior. Evidence also confirms that innovation-oriented leadership positively moderates the effect of innovation-oriented HRM on intrapreneurial behavior. Research limitations/implications Through the AMO framework, this study advances our understanding of how the interaction between innovation-oriented HRM and leadership fosters intrapreneurial behavior, ultimately contributing to superior innovation performance in SMEs. Practical implications The study recommends that SMEs implement innovation-oriented HRM practices to encourage intrapreneurial behavior and achieve superior innovation performance in SMEs. Originality/value Limited research has addressed the contributions of innovation-oriented HRM and leadership toward realizing strategic innovation objectives. Our study offers valuable insights into the functions of innovation-oriented HRM and leadership in stimulating intrapreneurial behavior, thereby enhancing the innovation performance of SMEs.