Fostering open innovation in SMEs: the crucial role of high-performance working systems and the mediating influence of innovative work behaviour

Abstract

Purpose: Owing to the growing importance of human resource practices (HRM) and open innovation (OI) in small and medium enterprises (SMEs) context, the purpose of this paper is to investigate the effect of high-performance working systems (HPWS) on inbound and outbound open innovation in SMEs through the mediating role of innovative work behaviour (IWB). Using ability-enhancing, motivation-enhancing and opportunity-enhancing (AMO) framework, this study investigates the direct and i.ndirect effects of HPWS AMO practices and SMEs open innovation through the mediation effects of IWB. Design/methodology/approach: This study employed a random sampling method to collect data by surveying 208 participants from SMEs in high-tech manufacturing and knowledge-intensive service sectors. Partial least squares-structural equation modelling is employed to analyse the interrelationships between constructs. Findings: The results show that ability-enhancing practices are critical HRM practices that directly influence SMEs inbound and outbound; IWB is positively and significantly related to OI approaches; IWB partially mediates the relations between AMO HPWS and inbound and outbound open innovation. Practical implications: The effects of HPWS practices are important in fostering OI in SMEs operating in Czech Republic. In addition, IWB is a partial intermediation that strengthens the relation between AMO HPWS and inbound and outbound OI. Originality/value: This study adds to our understanding of the direct and indirect interactions between HPWS practices, IWB and inbound and outbound open innovation in high-tech manufacturing and knowledge-intensive service SMEs in Czech Republic.