The Impact of Knowledge-Based Human Resource Management with the Mediating Role of Intellectual Capital and Social Capital on Innovation in Afghan Manufacturing Companies

Abstract

Objective: Effective and efficient knowledge management is considered an important factor in achieving sustainable competitive advantage for organizations. This study aims to analyze the impact of knowledge-based human resource management with the mediating role of intellectual capital and social capital on innovation in manufacturing companies in Afghanistan.

Design/Methodology/Approach: To examine the relationship of knowledge-based human resource management on intellectual capital, social capital, and innovation, a structural equation modeling approach is used based on data collected from managers of manufacturing companies in Afghanistan. The research instrument is a questionnaire consisting of 109 questions. Among them, 5 questions are for demographic purposes, 26 questions aim to assess the knowledge management process, 40 questions for intellectual capital, 21 questions for social capital, and 17 questions for innovation. The questionnaire is distributed to managers of Afghan manufacturing companies.

Findings: The results indicate that knowledge-based human resource management has a direct and significant impact on intellectual capital and social capital, but it does not have a direct and significant impact on innovation. However, knowledge-based human resource management has a significant positive relationship with innovation through the mediating role of social and intellectual capital.

Practical Implications: The scientific implications of this research lead to the development of knowledge-based human resource management, intellectual capital, social capital, and innovation in companies. Effective and implemented knowledge management can contribute to advances in the innovation performance of companies. The findings can be utilized by specialists and managers interested in advancing knowledge-based human resource management that leads to innovation.