As the 21st century has begun, increased globalization and competitiveness have negatively affected closed innovation. with the rise of the digital economy and sharing economy, new ventures can no longer afford to depend solely on internal research and development innovation processes (Sahibzada et al., 2021; Shahzadi, 2021). There is a disappearance of enterprise boundaries, which requires enterprises to gain innovation capabilities from outside, hence the concept of open innovation. By implementing open innovation, new ventures are able to lower their research and development costs (Haar et al., 2021), reduce product development time (Aljanabi, 2022), achieve higher coordination among organizations, and generate more revenue (Zhu et al., 2019), as well as overcome existing lack of managerial or technical knowledge (Aleksi? et al., 2021). Therefore, scholars and practitioners have recently shifted attention from traditional closed internal innovation to open innovation (Naseer et al., 2021). Open innovation refers to the deliberate use of inflows and outflows of knowledge and expansion of external markets for fostering innovation (Aljanabi, 2022; Chesbrough, 2003). Previously, studies have primarily examined open innovation's outcomes, while few have examined its antecedents. However, promoting and encouraging open innovation requires examining the driving factors of open innovation.
For this reason, in an attempt to clarify the possible effects of these factors, the study explores the effects of high-performance work systems (HPWS) on open innovation under the mediating effects of the knowledge management process (KMP). Furthermore, knowledge worker productivity (KWP) is also examined for its role in moderating the relationship between the constructs to gain a deeper understanding. There are many motives for the paper to contribute significantly to the theory of HPWS, knowledge management, and open innovation.
As one of various factors or antecedents that affect open innovation, A recent literature review emphasizes the importance of using an organization's human resources and knowledge capital to continually improve open innovation (Aleksi? et al., 2021). Effective human resource management practices are essential to realizing human resources' potential as engines for sustainable competitive advantages. Over the past three decades, management literature has advocated implementing best practices in human resources management. The practice is also referred to as "high-performance work practices” (Aleksi? et al., 2021). The most commonly used term, high-performance work system (HPWS), can be referred to as “a set of HR practices that enhance the motivation, ability, and opportunities of members so they can contribute to the performance of the organization”. HPWS consists of three distinct bundles(AMO) abilities; motivations; opportunities to participate) because this framework has been highly acknowledged by prior research, Particularly Aleksi? et al (2021), the framework identifies the dimensions that are essential for maximizing employee performance, Employees may perform better when they are capable, and sufficiently motivated, as well as whenever they are given the opportunity to express themselves at work (Aleksi? et al., 2021).
Based on HRM principles, HPWS motivates employees to gain considerable knowledge, produce high-quality work, and contribute significantly to the organization (Hwang et al., 2021). The purpose of HPWS is to increase the skill, knowledge, commitment, and involvement of employees by combining different human resources practices, processes, and work structures (Chong and Yuen, 2022). HPWS is the primary driver for firms to shape and develop employees’ skills, attitudes, and behavior which help them to effectively perform their work, successfully innovate and achieve organizational goals (Chen and Huang, 2009; Lei et al., 2021). HPWS supports open innovation, through employees' active learning, and high performance by making them capable of learning and exchanging knowledge with external sources. Although there is a broad acknowledgment on the importance of HPWS towards the firm’s outcomes such as performance, thriving at work, and productivity, little empirical research has tested the potential effects of HPWS practices on open innovation. In particular, Than (2022) indicated that knowledge of the possible differential influences of HPWS on of open innovation has not yet been sufficiently examined in previous works. Accordingly, this paper attempts to explore and increase the understanding of the relationship between HPWS and open innovation.
According to KBV, an organization's knowledge – valuable, unique, inimitable, unsubstitutable, and rare – is one of the most important strategic resources for maintaining competitive advantages (Boamah et al., 2022b; Felin and Hesterly, 2007). It is therefore possible for an organization to successfully achieve incremental and breakthrough solutions in responding to competitors' actions and market demands if its ability to create, disseminate, and manage knowledge is coupled with its ability to combine it with other resources. (Ferreira et al., 2020; Buenechea-Elberdin et al., 2018). Knowledge management emphasizes the circulation of inside and outside knowledge in the company, while open innovation is just breaking the barriers of organizational boundaries, which is beneficial to the circulation of knowledge. Previous literature has emphasized the critical and important role of Knowledge management in promoting open innovation (Ghasemaghaei and Calic, 2020; Mishra et al., 2019; Wamba et al., 2017) by enhancing and enabling a firm’s ability to deliver innovative business models that did not exist previously (Erevelles et al., 2016) as well as to provide new insights into the needs and desires of customers and potential opportunities in new markets, thus reaching innovations that are more compatible with market requirements (Cao et al., 2022; Niebel et al., 2019). According to Capurro et al (2022), Knowledge management is an important organizational capability to acquisition data from the outside and turn it into internal knowledge and an organizational routine that helps intensify collective efforts to achieve open innovation (Anderson et al., 2014). Despite the significance of KMP for open innovation, little attention is paid to examining the association between KMP and innovation, crucially, open innovation. Shehzad et al (2022), believe that the limited literature on KMP and open innovation needs to be expanded.
Sahibzada et al (2020) emphasize that KMP indirectly affects open innovation (Abubakar et al., 2019; Iqbal et al., 2019); a number of further variables reflect the influence of KMP on open innovation (Kianto et al., 2019; Shin et al., 2022, Butt et al., 2019). in recent decades, research on KBV has stressed the importance of knowledge workers' productivity for open innovation. The relationship between KWP and open innovation has generally been shown to be positive (Ahmed et al., 2021; Mnezafati et al., 2021; Anser et al., 2022). The rationale offered to explain this positive direct relationship is that firms must continuously ability to optimize knowledge work to achieve knowledge-based productivity, Hence ,this study examines" Does KWP mediator KMP impact on open innovation.
In this study, we examine the potential direct impact of HPWS on open innovation in practice. In addition, it examines their indirect effects through knowledge resources. This study aims to contribute several significant theoretical advances by providing practical support for these arguments. As a first step, this study seeks to extend the literature on HPWS by addressing the role of HPWS, since HPWS is a relatively new construct, and yet limited research has been conducted in the Jordanian context (Martinez-Sanchez and Vicente-Oliva, 2022). Moreover, despite the importance of HPWS, empirical research on HPWS still remains scarce (Haar et al.,2021). Furthermore, this study sheds light on how HPWS and open innovation are related. Literature has examined a variety of antecedents of open innovation, including leadership style Kianto et al (2021); institutional pressure Jiao et al (2021); information technology Jiao et al (2021a); dynamic capabilities Pundziene et al (2021); however, there has been no examination of how HPWS impacts open innovation. knowledge resources have not been examined as a mediating factor. To the best of my knowledge, for the first time, a study examines how KM process and KWP mediate the relationship between HPWS and open innovation. Additionally, such a study would introduce HPWS, KM, and open innovation into unexplored regions and cultures It is the Jordanian context
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