Empowering innovation in Malaysian manufacturing SMEs: the influence of organisational resources and knowledge sharing with HRM practices as a moderator

This study examines how structural capital, human capital, internal and external relational capital, and entrepreneurial orientation influence knowledge sharing, which impacts innovation performance in Malaysian manufacturing SMEs. It also investigates the role of human resource management practices in moderating this relationship. Analysing data from 133 manufacturing SMEs in Malaysia via partial least squares, the research reveals that structural, internal, and external relational capital, and entrepreneurial orientation, are positively linked to knowledge sharing. Surprisingly, human capital and international relational capital do not mediate between knowledge sharing and innovation performance. However, knowledge sharing positively correlates with innovation performance and is further enhanced by human resource management practices. These findings indicate the significance of intellectual capital and knowledge sharing in driving innovation, highlighting the crucial role of effective human resource management practices in this process. This study offers valuable insights for practitioners, policymakers, and scholars, informing strategic organisational decisions and future research.