Mediation of knowledge management processes in enabling strategic HR practices to achieve differentiation and cost-effectiveness
ISSN: 0368-492X
Article publication date: 31 October 2023
Issue publication date: 7 January 2025
Abstract
Purpose
This study explores how strategic human resource practices enhance the competitive capability of differentiation and cost-effectiveness by leveraging knowledge resources in Indian IT/software organizations. It examines the mediating effect of knowledge management (KM) processes in the relationship between strategic HR practices, competitive differentiation and cost-effectiveness capabilities.
Design/methodology/approach
An online questionnaire survey collected data from 380 knowledge workers in 25 IT/software and consultancy firms. The authors checked data reliability and validity by conducting exploratory factor analysis in SPSS and confirmatory factor analysis in AMOS. The authors evaluated hypotheses using path analysis in structural equational modeling in AMOS.
Findings
Strategic HR practices significantly and positively affect KM processes and competitive capabilities-differentiation and cost-efficiency. Both strategic HR practices and KM processes have a closer association with differentiation than cost-effectiveness. Knowledge management processes significantly and positively mediate between strategic HR practices and competitive capabilities. The mediation is more substantial in predicting differentiation than cost-effectiveness.
Research limitations/implications
It is a cross-sectional study with a constrained capacity to predict accurate causal inferences; The authors call for future studies with longitudinal design and objective measures. Further studies are required to explore the impact of various strategic HR configurations on KMP to understand how different routes stimulate a particular competitive strategy. This conceptual framework can be validated across different industry types and sizes.
Practical implications
This study provides practical insights to HR and knowledge managers regarding devising HR and KM processes to accomplish the goals of differentiation and cost-effective, competitive strategies. This study highlights that leveraging human capital for effective KM is crucial for gaining a competitive advantage.
Originality/value
The paper adds to the strategic HR and KM literature by exploring the mediating role of KM processes in enabling strategic HR processes to enhance differentiation and cost-effective, competitive strategies. It provides original empirical evidence from knowledge-intensive IT/software consultancies, particularly in India's emerging economy. It indicates the current state of HR practices adopted for optimum utilization of knowledge resources and the importance of differentiation strategy for Indian knowledge-intensive IT/software firms.
Keywords
Acknowledgements
Authors acknowledge the contribution of anonymous reviewers of the journal to improve this manuscript.
Funding: This research is funded by UGC under the scheme of Senior Research Fellowship.
Citation
Trivedi, K. and Srivastava, K.B.L. (2025), "Mediation of knowledge management processes in enabling strategic HR practices to achieve differentiation and cost-effectiveness", Kybernetes, Vol. 54 No. 2, pp. 789-806. https://doi.org/10.1108/K-06-2023-0959
Publisher
:Emerald Publishing Limited
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