Relationship Between Innovation-led HR Policy, Strategy and Firm Performance:A Serial Mediation Investigation

Budhwar, Pawan S, Do, Hoa and patel, charmi (2018). Relationship Between Innovation-led HR Policy, Strategy and Firm Performance:A Serial Mediation Investigation. Human Resource Management, 57 (5), pp. 1271-1284.


This research examines the relationship between innovation-led strategy and innovation-led HR policy (hereafter, management initiatives), and innovation performance. Our research model is theorised and tested in the Vietnamese context, based on servant leadership theory and componential theory of creativity. We draw upon constructs of management initiatives, servant leadership, employee creativity, and firm innovation to hypothesize serial mediation mechanisms linking management initiatives to firm performance. Using a multilevel sample of 56 service firms, we conduct multilevel path analyses. We find that (1) individual-level servant leadership mediates the top-down relationship between management initiatives and employee creativity; (2) employee creativity mediates the bottom-up relationship between individual-level servant leadership and firm-level innovation; and (3) firm-level innovation mediates the bottom-up relationship between employee creativity and firm-level market performance. We conclude by discussing both theoretical and practical implications.

Publication DOI:
Divisions: Aston Business School > Work & organisational psychology
Additional Information: Copyright © 2018 by John Wiley & Sons. This is the peer reviewed version of the following article: Relationship Between Innovation-led HR Policy, Strategy and Firm Performance: A Serial Mediation Investigation Budhwar, P. S., Do, H. & patel, C. 9 Mar 2018 In : Human Resource Management., which has been published in final form at This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
Uncontrolled Keywords: Innovation Strategy Execution,Innovation-led HR Policy,Management Initiatives,Servant Leadership Theory,Componential Theory of Creativity,Employee Creativity,Innovation
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Related URLs: https://onlinel ... .1002/hrm.21903 (Publisher URL)
Published Online Date: 2018-03-09
Published Date: 2018-09
Authors: Budhwar, Pawan S ( 0000-0001-8915-6172)
Do, Hoa
patel, charmi



Version: Accepted Version

Access Restriction: Restricted to Repository staff only until 9 March 2020.

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