Relationship between Human Resources Management Practices, Transformational Leadership, and Knowledge Sharing on Innovation in Iranian Electronic Industry

Abstract

Electronic industry needs innovation to survive, and also to compete internationally. This study examines factors that can enhance technical innovation of companies in the electronic industry of Iran. The main purpose of this study is to examine the relationship between human resource management practices, transformational leadership, knowledge sharing, and innovation of the large and major electronic companies.More specifically, the research attempts to examine whether knowledge sharing mediates the relationship between human resource management practices and transformational leadership with innovation. A quantitative research approach was used in this study. A cross-sectional correlational research design was used.The sample for this study was drawn from a population of 23,704 employees (managers, engineers, and expert technicians) of eight largest electronic companies in Iran using stratified sampling method. The sample size was 376.After exploratory Factor Analysis (EFA) and confirmatory factor analysis (CFA), structural equation modeling (SEM) technique was used to test the hypothetical model. The Findings asserts that only two HRM practices (training and participation) and three transformational leadership components (vision, intellectual stimulation and personal recognition) have significant impacts on innovation. Besides, knowledge sharing has significant and positive impact on innovation. Out of five HRM practices, training, staffing, participation have significant and positive impacts on knowledge sharing while intellectual stimulation, and personal recognition(as transformational leadership components) have significant and positive impacts.Finally, knowledge sharing merely mediated the relationships of training, participation, vision and personal recognition with innovation.

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