Leveraging of Ambidextrous HR on Employee Innovation Performance: The Role of Absorptive Capacity

Human resource practices are evolving at different rates across businesses to address the growing intensity of external challenges: rapid technology, intense competition, and resource allocation conflicts. Innovation drives profitability by shaping markets, customer preferences, and consumer behavior. Organizational innovation comes from employees’ innovative behaviors and actions. Innovation must be embedded in individuals’ mindsets and rooted in new human resource practices through ambidextrous HR practices (AHRP). AHRP supports ambidextrous organizations through paradox thinking, balancing organizational and individual innovation needs, and resolving internal tensions. The literature review indicated a contradictory impact of AHRP on employee innovation performance (EIP) and recommended examining it at the individual level. The outcome of AC in innovation performance is unclear and needs further investigation. The study examines the effect of AHRP on EIP mediated by the absorptive capacity (AC) in Egyptian organizations. The study is based on a new combination of social exchange theory, resource-based view, and the componential theory of creativity and innovation. A quantitative research approach has been adopted. Data was collected through an online questionnaire from 384 employees of organizations in diversified sectors in Egypt. Data was analyzed by Smart PLS 4.0. All hypotheses were retained. The model explains 55.1% of the variance in EIP in the Egyptian organizations. The study provides theoretical and practical implications; it examines bundled HR practices and their impact on EIP, fosters commitment and a culture of innovation, and guides managers to leverage Ambidexterity in HRM to improve EIP by simultaneously fostering commitment and cooperation HR practices.