IJIMT 2015 Vol.6(2): 81-87 ISSN: 2010-0248
DOI: 10.7763/IJIMT.2015.V6.579

Promoting Innovative Performance through Social Embeddedness: An Analysis on Innovative Human Capital among SMEs

Hasliza Abdul Halim, Noor Hazlina Ahmad, Seyedeh Khadijeh Taghizadeh, T. Ramayah, and Marini Nurbanum Mohamad
Abstract— The purpose of the paper is to examine the mediating role of innovative human capital (in terms of uniqueness of human capital, value of human capital, and proactiveness) on the relationship between social embeddedness (in terms of structural and relational embeddedness) and innovative performance in the context of Malaysian SMEs. A total of 262 usable questionnaires were collected from SMEs in Malaysia for testing these research objectives. The results of direct effects indicate that both structural and relational embeddedness have strong relationship with all three dimensions of innovative human capital namely uniqueness of human capital, value of human capital, and proactiveness. Further, uniqueness of human capital can increase the level of innovative performance. And also uniqueness of human capital can be a mediating variable on the relationship between both structural and relational embeddedness with innovative performance. Utilizing the structural and relational embeddedness, firms can create a unique and valuable asset of knowledge and increase the proactiveness among the individuals. In addition, social embeddedness can increase the level of innovative performance if firms select unique human capital with rare skill and knowledge simultaneously.

Index Terms— Social embeddedness, innovative human capital, innovative performance, SMEs, and Malaysia.

The authors are with School of Management, Universiti Sains Malaysia, 11800, Minden Road USM, Penang, Malaysia (e-mail: haslizahalim@usm.my, hazlina@usm.my, taghizadeh.nastaran@gmail.com, ramayah@usm.my, marini_nur@usm.my).

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Cite: Hasliza Abdul Halim, Noor Hazlina Ahmad, Seyedeh Khadijeh Taghizadeh, T. Ramayah, and Marini Nurbanum Mohamad, " Promoting Innovative Performance through Social Embeddedness: An Analysis on Innovative Human Capital among SMEs," International Journal of Innovation, Management and Technology vol. 6, no. 2, pp. 81-87, 2015.

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