The Impact of HRM Practices on Product Innovation With Moderating Role of Market Sensing Capability in Telecommunication Industry in Islamabad

Abstract

Human resource practices are the key to organizational success. A lot of research is done on human resource practices, but little attention is given to the association of human resource practices, and product innovation, and the role of market sensing capability as a moderator. Considering this gap this study is done to scrutinize the effect of human resource practices on product innovation with the moderating role of market sensing capability. This thesis was drawn on human resource theory and capability theory using primary data from three hundred employees of Telenor, Jazz, Ufone, and Zong. Regression analyses were done using SPSS 21. The result indicated that human resource practices include training, performance appraisal, and recruitment and selection have a constructive and substantial effect on product innovation, and their relationships are also moderated by market sensing capability. This research is done on the Telecommunication industry in Islamabad. Telecommunications is an important sector in Pakistan, and it is growing at a fast pace with increased overseas investment. The telecommunications industry demands the correct people for the correct job to trace the employee commitment and to enhance worth to stockholders by advanced and up-to-date HR practices. The main telecommunication business players in Pakistan are Mobilink, Zong, Ufone, and Telenor all having a very decent yearly market share. This progression in the telecom industry has made the current market is so unstable and the business scenario keeps changing and that makes innovation in an organization vital to cater to the need of the market. The finding, implication, and limitation of the research is provided.