Commitment-based HRM and inbound open innovation in SMEs: the role of organizational trust and developmental culture

Abstract

Purpose: Although scholars have been studying human resource management (HRM) and open innovation (OI), yet there is less attention to this relationship in the context of small-and medium-sized enterprises (SMEs). This paper aims to bring some insights about the human side of inbound open innovation (INOI) in SMEs. The goal is to better understand the role of organizational trust (OT) and developmental culture (DC) in the interactions between commitment-based HRM (C-HRM) and INOI. Design/methodology/approach: The present study employs partial least squares-structural equation modeling to investigate the interrelationships among constructs, utilizing data gathered from a sample of 206 SMEs. Findings: The study's empirical results indicate that the presence of OT serves as a complementary factor in mediating the relation between C-HRM and INOI. Furthermore, the analysis shows that there exists a moderating influence of DC in the relationship between C-HRM and INOI. Practical implications: The role of HRM practices is important in developing OT and consequently foster INOI in SMEs. To achieve INOI, SMEs need a DC that induces C-HRM toward an OI approach. Originality/value: This study adds to the understanding of the interactions between C-HRM practices and INOI in SMEs. The comprehension of the mediating function of OT and the moderating effect of DC serve to enhance the scholarly understanding of the human dimension of OI research.