HRM practices and organizational performance in the UAE banking sector

Author(s):  
Sherine Farouk ◽  
Hossam M. Abu Elanain ◽  
Shatha M. Obeidat ◽  
Moza Al-Nahyan

Purpose – The purpose of this paper is to examine the impact of human resource management (HRM) practices on organizational performance in the banking sector in the United Arab Emirates (UAE), to test the mediating impact of organizational innovation on the HRM-organizational performance relationship, and to test HRM practices as mediator of the relationship between innovation strategy and organizational innovation. Design/methodology/approach – Data were collected from 168 managers working in UAE banks. A structured questionnaire containing standard scales of HRM practices, innovation strategy, organizational innovation, organizational performance, and some demographic variables was used. The analytical method used to empirically test the hypotheses proposed is the structural equation modeling technique using PLS. The two steps are: the assessment of the outer model and the assessment of the inner model. Moreover, a bootstrapping method is employed in order to test indirect effects. Findings – Results found that organizational innovation fully mediates HRM-organizational performance link. Moreover, with the existence of innovation strategy, HRM mediates the relationship between innovation strategy and organizational innovation. Research limitations/implications – The limitations of common method bias and cross-sectional data are discussed in light of implications for future research. Nevertheless, the results provide new insights on the influence of HRM on organization innovation and performance in a non-Western context of the UAE by testing the role of some mediators in influencing the relationship between HRM and performance. Practical implications – In general, enhancing the effectiveness of HRM can result in higher level of performance and innovation. In particular, the choice of an innovation strategy implies the use of an effective incentive-based compensation, training and development, recruitment and selection and performance appraisal. Originality/value – This study is considered the first study to examine the mediating role of organizational innovation on the relationship between HRM and organizational performance in the Middle East. Also, the study is the first study to test the role of HRM as a mediator for the innovation strategy-innovation performance relationship in a non-Western context.

2021 ◽  
pp. 1111-1120 ◽  
Author(s):  
Nazlina Zakaria ◽  
Francis Chuah Chin Wei ◽  
Nor Azimah Chew Abdullah ◽  
Rushami Zien Yusoff

Many studies have focused on direct link between HRM practices and organizational performance. There is a strong relationship between these two variables that driven further research to identify the mechanism through which such relationship exists. Following resource-based view (RBV), the aim of this research was to investigate the indirect effect of organizational innovation on HRM practices-performance linkage. Data was collected from owners/managers of manufacturing SMEs in West Malaysia. 331 (60.5%) distributed questionnaires were received and analyzed through PLS-SEM. Out of six hypotheses on mediation, only one hypothesis was rejected. The findings strongly supported the RBV theory when organizational innovation significantly mediated the relationship. These results clearly indicate that organizational innovation plays an intermediate role between HRM practices (i.e. communication and information sharing, compensation, selection, performance appraisal, and training and development) and organizational performance of SMEs.


2015 ◽  
Vol 77 (22) ◽  
Author(s):  
Sri Gustina Pane ◽  
Dileep Kumar M ◽  
Muhammad Siddique

Recently, organizations are looking the ways to enhance their performance through innovation and learning. Most organizations are enhancing innovation to increase performance and to get a competitive advantage. However, very few studies are focused to investigate the role of organizational learning in the context of organizational innovation and performance. Current study aimed to investigate the mediating role of organizational learning between the relationship of the organizational innovation and performance. A random sample of 212 employees of the banking sector was selected to collect data. Results indicated that organizational learning significantly mediates the relationship of the organizational innovation and performance. Thus, a study was conducted to assess the presence of organizational learning can enhance the organizational performance in the presence of organizational innovation. 


2018 ◽  
Vol 30 (8) ◽  
pp. 592-612 ◽  
Author(s):  
Amro Alzghoul ◽  
Hamzah Elrehail ◽  
Okechukwu Lawrence Emeagwali ◽  
Mohammad K. AlShboul

Purpose This study aims at providing empirical evidence pertaining to the interaction among authentic leadership, workplace harmony, worker's creativity and performance in the context of telecommunication sector. These research streams remain important issues and of interest as the world continues to migrate toward a knowledge-based economy. Design/methodology/approach Applying structural equation modeling, this study diagnosed the impact of Authentic leadership (AL) on employees (n = 345) in two Jordanian telecommunication firms, specifically, how it shapes workplace climate, creativity and job performance. The study also tests the moderating role of knowledge sharing in the model, as well as the mediating role of workplace climate on the relationship between AL and positive organizational outcomes. Findings The empirical result suggests that AL positively influences workplace climate, creativity and job performance; workplace climate positively influences creativity and job performance; workplace climate mediates the relationship between AL and creativity, and job performance; and knowledge sharing behavior moderates the relationship between AL and workplace climate. Originality/value This study highlights the magnificent power of AL and knowledge sharing, not only in shaping the workplace atmosphere but also in delineating how these variables stimulate creativity and performance among employees. The implications for research and practice are discussed.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Son Thanh Than ◽  
Phong Ba Le ◽  
Thanh Trung Le

Purpose The purpose of this paper is to investigate the mediating roles of knowledge sharing behaviors (knowledge collecting and donating) in linking the relationship between high-commitment human resource management (HRM)practices and specific aspects of innovation capability, namely, exploitative and exploratory innovation. Design/methodology/approach The paper is based on quantitative approach and structural equation modeling to examine the correlation among the latent constructs based on the survey data collected from 281 participants in 95 Chinese firms. Findings The findings of this study support the mediating role of knowledge sharing (KS) behaviors in the relationship between HRM practices and aspects of innovation capability. It highlights the important role of knowledge donating and indicates that the effect of knowledge donating is more significant than that of knowledge collecting on exploitative and exploratory innovation. Research limitations/implications Future research should investigate the impact of high-commitment HRM practices on innovation capability under the moderating effects of organizational variables to bring better understanding on the relationship among them. Originality/value The paper significantly contributes to increasing knowledge and insights on the correlation between high-commitment HRM practices and specific forms of innovation. The understanding on mediating role of KS contribute to advancing the body of knowledge of HRM and innovation theory.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Geetha Jose ◽  
Nimmi P. M. ◽  
Sebastian Rupert Mampilly

Purpose This study seeks to evaluate the role of HRM practices in enhancing Employee Engagement, particularly at varying levels of perceived psychological safety. Design/Methodology/Approach Data collected through a questionnaire survey of 151 nurses are analyzed with warp-PLS structural equation modeling. Findings Perceived HRM practices lead to higher engagement levels. Psychological safety moderates the relationship between HRM practices and employee engagement inversely. Originality/value An un-preceded study examining the moderating role of Psychological safety on the instrumentality of HRM practices on engagement particularly among experienced medical care providers. Results suggest to provide customized HRM practices to experienced nurses in order to enhance their engagement levels.


2019 ◽  
Vol 13 (4) ◽  
pp. 559-587 ◽  
Author(s):  
Haniruzila Hanifah ◽  
Hasliza Abdul Halim ◽  
Noor Hazlina Ahmad ◽  
Ali Vafaei-Zadeh

Purpose Innovation has become an approach to create value for the customer to remain competitive in the market. However, previous research on innovation performance particularly among Bumiputera small and medium-sized enterprises (SMEs) had received little intention. Hence, Bumiputera SMEs need to inculcate the innovation culture to generate innovation performance. As such, the purpose of this study is to examine the ambidextrous orientation and innovation strategy on innovation culture, and how innovation culture could mediate the relationship between ambidextrous orientation and innovation strategy and innovation performance. In addition, this study also examines the role of government support as the moderator between innovation culture and innovation performance. Design/methodology/approach Data were collected from 140 Bumiputera SMEs and analyzed using partial least square-structural equation modeling via Smart PLS. Findings Findings indicated that ambidextrous orientation (alignment and adaptability) and innovation strategy (proactive creativity strategy and growth risk orientation strategy) had a significant impact on innovation culture. Besides, innovation culture mediated the relationship between alignment, proactive creativity strategy, growth risk orientation strategy and innovation performance. Surprisingly, innovation culture does not significantly mediate the relationship between adaptability and innovation performance. However, government support plays an important role to support innovation culture and innovation performance in Bumiputera SMEs. Originality/value This study makes both theoretical and practical contributions, especially in identifying the significant role of Bumiputera SMEs in creating an innovation culture. Besides, it explained government support as an important role in strengthening the relationship between innovation culture and innovation performance. The findings of the study will provide great help to Bumiputera entrepreneurs in formulating innovation culture in Malaysian SMEs.


2020 ◽  
Vol 11 (1) ◽  
pp. 233-256
Author(s):  
Tuan Azma Fatiema Tuan Ibrahim ◽  
Hafiza Aishah Hashim ◽  
Akmalia Mohamad Ariff

Purpose The purpose of this study is to investigate the relationship between ethical values and performance in the context of the banking sector in Malaysia. Design/methodology/approach Based on the philanthropic model, this study posits that firms undertaking zakat and charity are ethical firms. Zakat disclosure index (ZDI) and charity disclosure index (CDI) were constructed to measure ethical values. This study hypothesises that ethical values are positively associated with bank performance. Ethical values (i.e. CDI and ZDI) and financial performance data (i.e. return on assets) were collected from the disclosures made in the annual reports of 50 banks for a period of five years (2010-2014). Findings A positive association was found between zakat disclosure and bank performance. The results indicate that higher zakat disclosure is associated with greater bank performance. However, no relationship was found between charity disclosure and bank performance. Research limitations/implications Considering the limitation of the index used in this study, other dimensions such as corporate governance, sustainability, products and environment can be considered in the development of index to measure ethical values in future studies. Originality/value This study offers additional explanation on the relationship between ethical values and performance by examining the role of zakat disclosures that characterize the unique aspects of Malaysian companies.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ginevra Gravili ◽  
Francesco Manta ◽  
Concetta Lucia Cristofaro ◽  
Rocco Reina ◽  
Pierluigi Toma

PurposeThe aim of this paper is to analyze and measure the effects of intellectual capital (IC), i.e. human capital (HC), relational capital (RC) and structural capital (SC), on healthcare industry organizational performance and understanding the role of data analytics and big data (BD) in healthcare value creation (Wang et al., 2018). Through the assessment of determined variables specific for each component of IC, the paper identifies the guidelines and suggests propositions for a more efficient response in terms of services provided to citizens and, specifically, patients, as well as predicting effective strategies to improve the care management efficiency in terms of cost reduction.Design/methodology/approachThe study has a twofold approach: in the first part, the authors operated a systematic review of the academic literature aiming to enquire the relationship between IC, big data analytics (BDA) and healthcare system, which were also the descriptors employed. In the second part, the authors built an econometric model analyzed through panel data analysis, studying the relationship between IC, namely human, relational and structural capital indicators, and the performance of healthcare system in terms of performance. The study has been conducted on a sample of 28 European countries, notwithstanding the belonging to specific international or supranational bodies, between 2011 and 2016.FindingsThe paper proposes a data-driven model that presents new approach to IC assessment, extendable to other economic sectors beyond healthcare. It shows the existence of a positive impact (turning into a mathematical inverse relationship) of the human, relational and structural capital on the performance indicator, while the physical assets (i.e. the available beds in hospitals on total population) positively mediates the relationship, turning into a negative impact of non-IC related inputs on healthcare performance. The result is relevant in terms of managerial implications, enhancing the opportunity to highlight the crucial role of IC in the healthcare sector.Research limitations/implicationsThe relationship between IC indicators and performance could be employed in other sectors, disseminating new approaches in academic research. Through the establishment of a relationship between IC factors and performance, the authors implemented an approach in which healthcare organizations are active participants in their economic and social value creation. This challenges the views of knowledge sharing deeply held inside organizations by creating “new value” developed through a more collaborative and permeated approach in terms of knowledge spillovers. A limitation is given by a fragmented policymaking process which carries out different results in each country.Practical implicationsThe analysis provides interesting implications on multiple perspectives. The novelty of the study provides interesting implications for managers, practitioners and governmental bodies. A more efficient healthcare system could provide better results in terms of cost minimization and reduction of hospitalization period. Moreover, dissemination of new scientific knowledge and drivers of specialization enhances best practices sharing in the healthcare sector. On the other hand, an improvement in preventive medicine practices could help in reducing the overload of demand for curative treatments, on the perspective of sharply decreasing the avoidable deaths rate and improving societal standards.Originality/valueThe authors provide a new holistic framework on the relationship between IC, BDA and organizational performance in healthcare organizations through a systematic review approach and an empirical panel analysis at a multinational level, which is quite a novelty regarding the healthcare. There is little research focussed on healthcare industries' organizational performance, and, specifically, most of the research on IC in healthcare delivered results in terms of theoretical contribution and qualitative analyzes. The authors even contributed to analyze the healthcare industry in the light of the possible existence of synergies and networks among countries.


2015 ◽  
Vol 36 (3) ◽  
pp. 271-295 ◽  
Author(s):  
Fermín Mallén ◽  
Ricardo Chiva ◽  
Joaquín Alegre ◽  
Jacob Guinot

Purpose – The purpose of this paper is to investigate the relationship between altruistic leader behaviors, organizational learning capability and organizational performance. Design/methodology/approach – The sampling frame consists of several databases or listings of business that consider people as a key element of the organization and are considered by their employees to be good firms to work for or organizational environments where human resources management has high priority (n=251). The authors use structural equation modeling to test if the relationship between altruistic leader behaviors and organizational performance is mediated by organizational learning capability. Findings – Results suggest that organizational learning capability fully mediates between altruistic leader behaviors and organizational performance. Thus, organizational learning capability plays a key role in explaining how altruistic leader behaviors affect organizational performance, essentially because it facilitates the creation of a creative, participatory and dialogue-based environment that promotes organizational learning. Research limitations/implications – The database used in the study is very heterogeneous. Future research might delimit the database by organization size or sector. Qualitative studies may also improve our understanding of the relationships studied and enable other concepts to be included. Practical implications – This study provides evidence of the positive relationship between altruistic leaders and performance. However, recruiting and fomenting altruistic leaders is not sufficient on its own to improve performance, and should be accompanied by implementing other facilitating factors of organizational learning such as dialogue or experimentation. Originality/value – In recent years some studies have linked leadership with organizational learning. However, this is one of the first studies to concentrate on altruistic leader behaviors as such, a concept that has received scant mention in the literature despite its importance in a number of leadership styles, and its relevance today as an alternative to the egotistic leader. The authors offer empirical evidence of the role of altruistic leader behavior as an antecedent of organizational learning capability and subjective measures of performance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdul Waheed ◽  
Qingyu Zhang ◽  
Abaid Ullah Zafar ◽  
Hashim Zameer ◽  
Muhammad Ashfaq ◽  
...  

PurposeThis study investigates the impact of corporate social responsibility (CSR) on organizational performance, especially competitive performance (CP) along with moderating role of the organizational culture (OC) from the banking sector of China. Drawing on the stakeholder theory, the first goal is to examine the relationships between CSR and organizational CP. Second, the purpose is to evaluate the moderation of OC between the relationship of CSR and CP, respectively.Design/methodology/approachSEM using SmartPLS was majorly engaged to ascertain the relationship and to inquire the assumed hypotheses. The convenience sampling was engaged to collect the data from the Chinese banking market with the help of students, colleagues and personal visits.FindingsThe findings exhibited that CSR both external and internal CSR has significant correlations on organizational CP within banking sector of China. Second, the findings revealed a positive moderation influence of OC between the relationships of CSR and organizational CP. The comprehensive analysis of each factor of CSR on organizational CP was autonomously inspected to understand the insights which ensure that how the incorporation of CSR and OC activities may improve organizational CP.Research limitations/implicationsThis study faces numerous limitations related to sample and geographic locations that assure new work possibilities for researchers across the world.Practical implicationsThis study equips insightful information for management on how organizations can obtain CP by consolidating CSR and OC activities as their more productive strategic tools. This article endows with potential theoretical and managerial implications with empirical addition to concerned literature of OC, CSR and organizational CP.Social implicationsUnderstanding OC and CSR activities can provide interesting and helpful insights for the personnel to perform well within the banking institutes.Originality/valueThe topic of CSR and culture has been known as the evolving concept that is getting strong concern for the researchers. The additional work particularly empirical is yet required to explore the insights on CSR and OC themes worldwide, especially in developing nations.


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