"THE RELATIONSHIP BETWEEN COMMITMENT BASED HR AND OPEN INNOVATION: THE MEDIATING ROLE OF DYNAMIC CAPABILITIES"

Abstract

Purpose: This study develops a framework that propose the relationship between Commitment based HR and Open Innovation: the mediating role of Dynamic Capabilities. Hypothesis show that, to operate organizations’ operations while having Commitment based HR and Open Innovation constructs, a firm must have Dynamic Capabilities which strongly mediates the relation between Commitment based HR and Open Innovation. Research scholars have studied Commitment based HR Open Innovation, and Dynamic Capabilities, separately in Pakistani Socio-economic context. While little to no attention have been paid to topic ofthis research. Methodology & Design: Hypothesis testing was conducted using online survey forms, Primary data was collected from 300 employees working in SMEs of Karachi, Pakistan. Sampling techniques and data analysis conducted using Mediation analysis in SmartPLS. Convenience sampling is the sampling technique. This research is based on Deductive approach, whereas research type being Quantitative approach. Constructs of the study Commitment based HR, Open Innovation and Dynamic Capabilities. are Findings: Findings of the study states clearly that, there is significant influence of CHR on DC, significant influence of DC and 01, and insignificant influence of CHR on 01. The constructs Commitment based HR and Open Innovation seem to have no relation ifthey put together however, adding a mediator'Dynamic Capabilities strongly influence CHR and 01 relationship. Limitations: There have been various constraints which restricts the scope of research. Time constraint was major barrier, due to which more valuable variables couldn’t be added to the topic, limits the amount of sample population which could be added to the population sample. Financial instability and geographical limitations intervened so the research could not be conducted out of industrial hub of Karachi; in other industrial hubs of Pakistan, also this research could include service sector of SMEs of Pakistan too. Recommendations: SMEs which are having Commitment based HR and Open Innovation as constructs in their operations, they need to deploy Dynamic Capabilities as a mediator in this relationship, so it has positive significance on overall organization. This research facilitates SMEs to roll out Open innovation program. It encourages Organizations to focus on Commitment based HR to perform better in Innovative environment