An Empirical Study of HRM Systems, Human and Social Capital Development and their Influence on Innovation Capabilities

2018 International Journal of Managerial Studies and Research  
The aim of this study is to examine HRM systems, human and social capital development and their influence on innovation capabilities in production and service organizations in Turkey. Primary data is collected from two hundred and fifteen employees. The collected data is analyzed by using structural equation modelling. Human capital development mediates the relationship between high-profile personal HRM system and innovation capabilities. Also, the relationship between collective HRM system and
more » ... innovation capabilities is influenced by the mediating effect of social capital development. Moreover, there is a direct and significant relationship between high-profile and collaborative HRM systems. The impact of social capital development on human capital development is significant and positive. When the moderating effect of sector is tested, sector moderates the above mentioned relationships, but it does not have any moderating effect on the relationship between the two HRM systems and the relationship between social and human capital development. Managers should carefully use these two HRM systems to develop human and social capital within their organizations, and they should be very skilful in managing the mediating effect of human and social capital so that the innovation capabilities of their organizations can be positively improved.
doi:10.20431/2349-0349.0605003 fatcat:bbxwbyjwtfctben2l4sdtqplce