Intellectual Capital–Enhancing HR, Absorptive Capacity, and Innovation

This study investigates the role of intellectual capital (i.e., human, social, and organization capital)-enhancing human resource (HR) practices in the development of a firm's absorptive capacity, as well as the mediating role of absorptive capacity in its relationship to the firm's innovation performance. Results show that while human capital-enhancing HR (acquisition and developmental HR) is positively related to absorptive capacity, social capital-enhancing HR affects absorptive capacity through egalitarian HR practices. Organization capital-enhancing HR practices contribute to absorptive capacity through effective information systems. Finally, our findings confirm that the various intellectual capital-enhancing HR practices affect innovation performance through their impact on the firm's absorptive capacity. (c) 2016 Wiley Periodicals, Inc.