SHRM and product innovation: testing the moderating effects of organizational culture and structure in Chinese firms

Abstract

Prior studies have found a positive effect of strategic human resource management (SHRM) on firm performance. However, little research has been done to understand how SHRM is employed to facilitate product innovation. Following the contextual perspective of SHRM, this study examines an interactive model in which corporate culture and structure are proposed to moderate the SHRM–product innovation relationship. Empirical results from a sample of 223 Chinese enterprises indicate that SHRM has a positive impact on firms' product innovation and this relationship is stronger for firms with a developmental culture. Furthermore, an examination of three-way interactions indicates that in firms with a flatter structure, the relationship between SHRM and a developmental culture is stronger.