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American Journal of  Economics and 
Business Innovation (AJEBI)

Influence of  High-Involvement and High-Commitment HRM Practices on 
Innovation: The Mediating Role of  Knowledge Sharing

Ha Thanh Tung1, Le Ba Phong1*

Volume 2 Issue 2, Year 2023
ISSN: 2831-5588 (Online), 2832-4862 (Print)

DOI: https://doi.org/10.54536/ajebi.v2i2.1589
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Article Information ABSTRACT

Received: April 30, 2023

Accepted: May 03, 2023

Published: May 06, 2023

Given the important role of  HRM practices and knowledge resources for firms to pursue 
innovation, the purpose of  this study is to investigate the influence of  high-involvement and 
high-commitment HRM practices on the innovation capability of  firms via mediating role 
of  knowledge sharing. This study has developed a proposed research model and applied 
Structural Equation Modeling (SEM) to test proposal hypotheses using data collected from 
211 participants in 65 Vietnamese firms. The findings of  this study support the significant 
impacts of  both high-involvement and high-commitment HRM practices on innovation 
capability directly or indirectly through the mediating role of  knowledge sharing. Especially, 
the empirical findings reveal that high-involvement HRM practices induce greater effects 
on innovation compared to the effects of  high-commitment HRM practices. The findings 
of  this study have significantly contributed to increasing the insight of  the link between 
specific forms of  HRM practice and innovation capability. Moreover, it provides an effective 
solution for Vietnamese firms to pursuit and foster innovation capability. 

Keywords
High-Involvement HRM 
Practices, High-Commitment 
HRM Practices, Knowledge 
Sharing, Innovation Capability

1 Hanoi University of  Industry, Bactuliem, Hanoi, Vietnam
* Corresponding author’s e-mail: ebaphong.vn@gmail.com

INTRODUCTION
Due to the unpredictable technology change, competitive 
pressure, and diversity of  customer needs, improving 
innovation capability is regarded as an optimal strategy 
for firms to achieve competitive advantages and 
overcome key rivals (Yang et al., 2018; Le, 2020; Lei et al., 
2021). Innovation capability has become the main driving 
force for firms to attain competitive advantages (Kaya & 
Patton, 2011; Ha et al., 2019; Lei et al., 2021) and bring 
firms success in the dynamic markets in long term (Le 
& Lei, 2019; Sengphet et al., 2019; Le & Tran, 2020; Le 
et al., 2020). However, it is not easy for firms to develop 
innovation properly due to lack of  understanding on 
HRM practices and appropriate processes that facilitate 
innovation (Lei et al., 2021; Cao et al., 2022; Son & Phong, 
2023). To fill these theoretical gaps, this study will develop 
a proposed research model to examine the impacts 
of  high-involvement and high-commitment HRM 
practices on the innovation capability of  firms based on 
the mediating role of  knowledge-sharing activities of  
employees in organizations. 
This study is expected to significantly expand the 
HRM theory and bring valuable insight of  innovation 
management by following reasons. 
First, knowledge and human resources are widely accepted 
as the key and valuable assets for firms to create value 
and sustain competitive advantage in the rapidly changing 
environment (Chen & Huang, 2009; Le & Lei, 2018; Than 
et al., 2021; Siddiqua et al., 2022; Marhil et al., 2023). HRM 
practices are generally accepted as the primary means for 
firms to shape and develop employees’ skills, attitudes, 
and behavior by which they can successfully innovate and 
achieve organizational goals (Chang et al., 2011; Cao et al., 

2022; Than et al., 2023). However, little empirical research 
has explored the potential effects of  high-involvement 
and high-commitment HRM practices on innovation 
capability (Camelo-Ordaz et al., 2011; Alikaj et al., 2020; 
Le & Le, 2023 a, b; Than et al., 2023). Moreover, Haneda 
and Ito (2018) indicated that the possible differential 
influences of  HRM practices on innovation have not yet 
been sufficiently examined in previous works. Accordingly, 
to clarify how high-involvement and high-commitment 
HRM practices affects innovation capability, this study 
proposed the first research question (RQ).

RQ1. Do high-involvement and high-commitment 
HRM practices induce different influences on 
innovation capability?
Second, knowledge sharing (KS) activities are seen as one 
of  the most essential ingredients to enrich organizational 
knowledge resources for fostering innovation capability 
and key outcomes (Le & Lei, 2018; Le & Lei, 2019; 
Phong & Son, 2020; Lathong et al., 2021). However, little 
research has examined antecedents or conditions that 
encourage KS processes of  employees for innovation 
(Le & Lei, 2019; Than et al., 2021). In addition, although 
several studies indicated the importance of  HRM 
practices in the creation of  an appropriate climate for KS 
activities, little to no study has investigated the concurrent 
effects of  different HRM models on KS activities of  
employees. Given the importance of  HRM practices and 
the theoretical gaps with respect to its influence on KS 
process, this study attempts to bring the answers for the 
second research question.

RQ2. Do high-involvement and high-commitment 

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HRM practices significantly affect knowledge 
sharing?
Third, literature highlighted the necessity of  HRM 
practices to encourage employees to ready share more 
individual knowledge and expertise for innovation 
(Camelo-Ordaz et al., 2011; Le & Le, 2023 a, b). This 
implied that HRM practices enable firms to enhance 
employees’ capability of  generating knowledge within 
their sphere of  influence, and maximize the effects of  
shared knowledge for organizational innovation (Tan 
& Nasurdin, 2011; Lei et al., 2021; Than et al., 2023). 
Especially, Than et al. (2023) stressed the need of  
advancing the comprehension of  how HRM practices 
connect with KS processes to stimulate innovation 
capability for firms. Against such background, to bridge 
the theoretical gaps and provide deeper understanding on 
mediating mechanism of  KS process on HRM practices-
innovation relationship, this study attempts to shed a light 
on third research question.

RQ3. Do KS behaviors mediate the influence of  
high-involvement and high-commitment HRM 
practices on innovation capability?
To fill research gaps addressed above, this study develops 
an integrated research model to estimate the effects 
of  high-involvement and high-commitment HRM 
practices on innovation capability of  Vietnamese firms 
via mediating role of  KS activities. This study applies 
structural equations modeling (SEM) to examine the 
correlation between the latent variables in the proposal 
research model based on the data collected from 211 
participants in 65 manufacturing and service firms in 
Vietnam. This study is expected to provide theoretical and 
practical initiatives on HRM practices and KS to pursuit 
and improve innovation capability for Vietnamese firms.

LITERATURE REVIEW AND HYPOTHESIS
The Influences of  HRM Practices on innovation 
capability
Innovation has been recognized as an important factor 
for firms to create value and have a great influence on 
competition (Mintzberg, 1994; Son & Phong, 2023). 
Innovation is fast becoming a crucial factor in firm 
performance and survival as a result of  the evolution of  
the competitive environment (Hui et al., 2018; Le & Le, 
2021; Gui et al., 2022). The literature revealed that there 
are many different definitions of  innovation capability in 
the current research (Baregheh et al., 2009; Le & Lei, 2019; 
Le, 2021; Nguyen et al., 2022). However, it is defined as 
the process of  the introduction and implementation of  
new ideas, products, services, procedures, technology, 
organizational structures, plans and programs, to increase 
organizational performance and achieving organizational 
success (Rujirawanich et al., 2011; Van et al., 2018; Le & 
Lei, 2019; Lathong et al., 2021).
The HRM literature offers two basic approaches that an 
organization can utilize to manage relationships with its 
employees. On the one hand, high-involvement HRM 

practices emphasize the mutual long-term exchange 
relationships (Camelo-Ordaz et al., 2011). It is considered 
as a management approach focusing on employee 
involvement and a strong instrument of  practices to 
foster the development of  employee’s knowledge, skills, 
and motivation (Rubel et al., 2017; Yasir & Majid, 2020). 
On the other hand, high-commitment HRM practices 
refer to management approach focusing on encouraging 
employees to identify organizational goals, and working 
hard to enhance productivity and efficiency. Therefore, 
these firms attempt to obtain talented employees and 
encourage employees to reach innovative goals (Chiang et al., 
2011; Than et al., 2023). Previous studies argued that firms 
adopting high-commitment HRM practices can create a 
high-commitment and motivation among employees such 
as employment practices, appraisal, competitiveness, fair 
compensation, comprehensive training and development 
(Camelo-Ordaz et al., 2011; Chiang et al., 2011; Than et 
al., 2023). The remarkable deliberation on consequences 
of  HRM practices indicated that organizations might 
increase their innovation capability and sustain competitive 
advantages through applying HRM practices (Than et al., 
2023). Thus, this study investigates the effect of  high-
involvement and high-commitment HRM practices on 
innovation capability.
Regarding the relationship between HRM practices and 
innovation, previous studies have shown the positive 
and significant impacts of  HRM practices on innovation 
capability. Indeed, Chen and Huang (2009) claimed that 
strategic HRM practices can affect and alter employees’ 
attitudes, capacities, and behaviors to attain organizational 
goals. This assists in nurturing and creating the necessary 
conditions and catalysts for employees to develop 
innovation activities. De Winne and Sels (2010) justified 
that a wide range of  HRM practices is more beneficial 
for innovation compared with low human capital in start-
ups. Laursen and Foss (2014) have critically discussed the 
literature and indicated the positive relationship between 
HRM practices and important outcomes of  innovation. 
Diaz-Fernandez et al. (2017) noted that HRM practices 
served as antecedent of  innovation by which firms 
should invest in HRM practices to effectively use available 
resources for arousing innovation. Aman et al. (2018) 
argued that the purpose of  HRM practices is to provide 
an environment which is conducive enough to develop 
employees’ skills and competencies for innovation. In 
particular notes, recent studies supposed that high-
involvement and high-commitment HRM practices are 
primary tools for improving firms’ innovation outcomes 
due to its capabilities of  transforming and obtaining 
innovative behaviors from employees (Yasir & Majid, 
2020; Than et al., 2023).Above arguments support positive 
effects of  HRM practices on innovation capability, so 
following hypotheses are posed (see Figure 1):
H1a. High-involvement HRM practices positively affect 

innovation capability.
H1b. High-commitment HRM practices positively affect 

innovation capability.

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The influences of  HRM practices on knowledge 
sharing
Knowledge is well known as the invisible and valuable 
resource of  an organization (Son et al., 2020). Le and Lei 
(2019), supposed that the effectiveness in the process of  
sharing knowledge is the determinant of  an organization’s 
success. As a result, organizations need to pay great 
attention to improving knowledge sharing activities in 
their firms. KS is defined as processes of  exchanging 
information and know–how among employees for the 
accomplishment of  specific tasks in organizations (Le & 
Lei, 2019; Le & Nguyen, 2023). Literature revealed that 
successful extent of  initiatives of  knowledge management 
mainly depends on the effectiveness of  knowledge 
sharing activities in an organization (Le & Lei, 2018; Yang 
et al., 2018; Le & Nguyen, 2023). As a result, KS activities 
have a great potential and benefits for firms to follow and 
enhance innovation capability.
HRM practices are regarded as the primary approaches to 
evoke and reinforce organizational knowledge resource 
that firms need for meeting their key goals (Chen & 
Huang, 2009; Than et al., 2023). Soliman and Spooner 
(2000) highlighted the strategic role of  HRM practices in 
identifying knowledge gaps and ensuring the success of  
knowledge management programs directed at capturing, 
using and re-using employees’ knowledge. They argued 
that HRM practices help to create a favorable culture 
encouraging the free flow of  knowledge for meeting 
organizational goals. Chiang et al. (2011) found that 
HRM practices induces positive effects on employees’ 
KS behaviors directly or indirectly by its impacts on their 
willingness to devote themselves to an organization. 
According to Jimenez-Jimenez and Sanz-Valle (2013), 
HRM practices are critical antecedents of  generating 
an appropriate and beneficial culture for encouraging 
processes of  acquiring and sharing knowledge in an 
organization. Adopting a qualitative research method 
based on a multiple case study, Gope et al. (2018) showed 
the evidence on the positive relationship between HRM 
practices and organizational knowledge resource due to 
significant impacts of  HRM practices on the motivation 

and retention of  employees for process of  acquiring and 
sharing knowledge. Recently, Than et al. (2023) argued 
that HRM practices contribute to the creation of  an 
organizational social climate where employees are willing 
to share their knowledge. There finding showed that 
HRM practices are significantly associated with processes 
of  sharing knowledge among employees. To clarify the 
influence of  high-involvement and high-commitment 
HRM practices ib KS, this study proposes the following 
hypotheses:
H2a. High-involvement HRM practices positively affect 

knowledge sharing.
H2b. High-commitment HRM practices positively affect 

knowledge sharing.

The influences of  knowledge sharing on innovation 
capability
Prior researches highlight KS as an important precursor 
of  innovation capability (Yang et al., 2018; Le & Lei, 
2019; Phong & Thanh, 2023). Specifically, Podrug et al. 
(2017) pointed out that the willingness of  employee to 
donate and collect knowledge significantly contributes to 
improving innovation capability for organization. Yang et 
al. (2018) asserted that KS among employees may help 
firms to have superior innovation capability because 
firms can only perform effectively manage knowledge if  
employees are willing to sharing their knowledge with the 
others. Le and Lei (2019) supposed that promoting KS 
practices among individuals might be optimal solutions 
for firms to increase its capability of  generating new 
ideas and developing new business opportunities, and 
consequently facilitating innovation activities. Previous 
studies argued that capability in transforming and applying 
knowledge determines a firm’s degree of  innovation 
(Lei et al., 2019a, b). KS processes can serve as the main 
drivers that enhance organizational capability for radical 
and incremental innovation (Le et al., 2020; Shehzad et 
al., 2021). Some recent studies also justified that fostering 
processes of  sharing key information, knowledge and 
resources among employees is a prerequisite and optimal 
solution for increasing creative ideas and innovation 

Figure 1: Proposed research model

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capabilities of  firms (Le et al., 2020; Than et al., 2023). 
These arguments support positive effects of  KS on 
innovation capability. So. This study proposed following 
hypothesis:
H3. Knowledge sharing activities positively predict 

innovation capability.
Above discussions show that HRM practices positively 
affect KS, which in turn significantly affect innovation 
capability. Additionally, prior research showed that KS is 
an important mediating variable between HRM practices 
and innovation (Cao et al., 2022; Than et al., 2023). We, 
therefore, proposed that:
H4a: KS mediates between High-involvement HRM 

practices and innovation capability
H4b: KS mediates between High-commitment HRM 

practices and innovation capability

METHODOLOGY
Sample and data collection
This study employs survey method for data collection. 
The paper used convenient sampling method to collect 
data from medium and small firms in some major cities 
of  Vietnam such as Hanoi, Danang and Hochiminh. We 
communicated with representatives of  these firms who 
mainly worked in departments of  HRM by phone or make 
personal visits to explain the purpose of  the research, and 
ask for their assistance in collecting data. The respondents 
need to be vice managers, head of  departments, team 
leaders to ensure having full understanding on firm’s 

business situation. We used the measurement items that 
adapted from existing scales in the literature to develop 
the initial list of  items. We then conducted a pilot test 
based on in-depth interviews with five outstanding 
academic scholars and 35 participants from three firms 
to refine the questionnaire and align with the Vietnamese 
context. In the formal data collection, this study sent 375 
questionnaires to the representatives of  65 firms and 
received 233 ones, among which 211 ones are valid, with 
a 56.2% valid rate. 

Variable measurement
To ensure the validity and reliability of  the study, the 
variables were measured using items developed and 
employed in previous studies. All items were measured via 
five-point Likert-type scales ranging from “1” (strongly 
disagree) to “5” (strongly agree) or from “1” (strongly 
unwilling to) to 5 (strongly willing to). This study used 
six items adapted from the study of  Camelo-Ordaz et al. 
(2011) and seven items adapted from the study of  Kang 
and Kang (2016) to measure individuals’ perception of  
high-involvement HRM and high-commitment HRM 
practices in their firms respectively. This study used 10 
items adapted from the study of  Yang et al. (2018) to 
measure the KS activities in organizations. For measuring 
innovation capability, this study used 6 items adapted 
from the research of  Nguyen et al. (2019) to measure 
firm’s capabilities of  creating new products, services and 
processes (Table 1).

Table 1: Scale of  factors in the proposal research model
Factors Items Source
High-involvement HRM practices (I-HRM)
IHRM1 My firm emphasizes promotion from within Camelo-Ordaz 

et al. (2011)IHRM2 Performance appraisals include developmental feedback
IHRM3 Selection process assesses the ability to collaborate and work in a team
IHRM4 Training activities focus on team building and interpersonal relations
IHRM5 Appraisals are based on team performance
IHRM6 Appraisals focus on employees’ ability to work with others
High-commitment HRM practices (C-HRM)
CHRM1 My firm often strives for employment security Kang and Kang 

(2016)CHRM2 My firm often hires employees based on their aptitude and specialty
CHRM3 My firm often grants employees the authority necessary to perform their work
CHRM4 My firm often compensates employees fairly based on their performance
CHRM5 My firm often provides employees with fair opportunities for training
CHRM6 My firm often treats employees without any discrimination
CHRM7 My firm often shares extensively financial and performance information with 

employees
Knowledge sharing (KS)
KS1 Usually, I do my best and offer suggestions while discussing work-related matters 

with my colleagues
Yang et al.  (2018)

KS2 I am usually willing to share my knowledge and experience with others
KS3 I am willing to answer the questions of  my colleagues as well as I can.
KS4 I usually record as much as possible when I am writing a document or a report.

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KS5 If  something is hard to explain, I gladly give my colleagues a demonstration
KS6 I am willing to offer less-experienced colleagues opportunities to perform
KS7 When my colleagues are in need, I do my best to offer them needed information 

and documents
KS8 I tell colleagues where to look for support if  I can't help them with their problems
KS9 I encourage my colleagues when they are facing difficulties at work
KS10 When I teach my colleagues, I express my ideas in a way in which they can be 

fully understood
Innovation capability (IC)
IC1 Our firm frequently tries out new ideas Nguyen et al. 

(2019)IC2 Our firm seeks new ways of  doing things
IC3 Our firm is creative in its operating methods
IC4 Our firm is frequently the first to market new products and services
IC5 Innovation is perceived as too risky in our firm and is resisted (reversed coded)
IC6 New product introduction in our firm has increased during the last five years

RESULTS
Measurement model
A series of  tests are performed to assess the validity and 
reliability of  the constructs (Table 2). Specifically, to assess 
the reliability of  the latent variables, basing on suggestion 
of  Nunnally and Bernstein (1994), this study used the 
Cronbach’s alpha coefficients of  each one that require 

greater than the level of  0.7. Confirmatory factor analysis 
(CFA) to test for the convergent validity; and comparing 
the squared correlations between the latent variables and 
square root of  average variance extracted (AVE) to test 
the discriminant validity of  measures (Fornell & Larcker, 
1981).
Results in Table 2 showed AVE, CR, mean, standard 

Table 2: Descriptive statistics and average variances extracted from constructs
Construct AVE CR Cα Mean SD IHRM CHRM KS IC
High-involvement HRM (IHRM) 0.60 0.91 0.91 3,37 0.66 0.77
High-commitment HRM (CHRM) 0.72 0.94 0.94 3.36 0.49 0.69 0.84
Knowledge sharing (KS) 0.70 0.95 0.95 3.41 0.58 0.55 0.59 0.83
Innovation capability (IC) 0.67 0.92 0.92 3.67 0.59 0.59 0.54 0.72 0.81
Note: Cα ≥ 0.7; CR ≥ 0.7; AVE ≥ 0.5; Diagonal elements (in bold) are the square root of  the AVE.

deviation (SD) and C. These results have provided the 
evidence for the evidence on the reliability of  scales as 
well as the convergent validity of  constructs.
In addition, to evaluate the discriminant validity of  latent 
constructs in the proposal model, the paper used the 
squared correlations among the latent factors to control 
whether they are smaller than each latent variable’s 
square root of  AVE or not. Table 2 also points out that 

the squared correlations among the latent factors are 
lower than square root of  AVE of  each one (diagonal 
elements in bold). 
Thus, according to Fornell and Larcker (1981), the 
results have provided significant support for the scales’ 
discriminant validity. Fit indices of  the measurement 
model obtained from CFA model show that the model fits 
the data (see Table 3).

Table 3: Overall fit index of  the CFA model
Fit index Scores Recommended value
Absolute fit measures
CMIN/df 1.657 ≤2a; ≤5b
GFI 0.832 ≥0.90a; ≥0.80b
RMSEA 0.056 ≤0.8a; ≤0.10b
Incremental fit measures
NFI 0.900 ≥0.90a;
TLI 0.950 ≥0.90a;
CFI 0.954 ≥0.90a;
Notes: a Acceptability: acceptable; b Acceptability: marginal

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Findings
The paper applied Structural equation model with 
procedures of  maximum likelihood estimation to examine 
the proposal hypotheses. The findings indicated that 
the fit indices of  the proposal model are satisfactory 

(χ2=611.603; df  = 369; RMSEA = 0.056; GFI = 0.832; 
CFI = 0.954; TLI = 0.955). The results show that the 
correlation among latent factors fit the data. The main 
findings of  this study are shown in Table 4 and Figure 2.

Figure 2: Results of  the structural equation model

Direct effect analysis
As shown in the Table 4 and Figure 2, the empirical 
findings revealed that influences of  high-involvement 
innovation capability are statistically significant (= 0.263; 

p < 0.001), favoring for hypothesis H1a. In contrast, the 
results indicated that the impacts of  high-commitment 
HRM practices on innovation capability ( = 0.027; p > 
0.1) is not significant. So H1b is not supported. 

Table 4: Structural model results
Hypotheses Effect Estimate t-value Results
H1a. High-involvement HRM Innovation capability + 0.263*** 3.315 Supported
H1b. High-commitment HRM Innovation capability + 0.027 0.318 Not supported
H2a. High-involvement HRM Knowledge sharing + 0.261** 2.998 Supported
H2b. High-commitment HRM Knowledge sharing + 0.417*** 4.554 Supported
H3.Knowledge sharing Innovation capability + 0.564*** 7.627 Supported
Notes: ***P < 0.001; **P < 0.05.

Hypothesis H2a.b relating to the influence of  high-
involvement and high-commitment HRM practices on 
KS activities are statistically significant and quite large. 
So H2a.b is supported. Specifically, the results showed 
that the impacts of  high-commitment HRM practices on 
knowledge sharing (= 0.417; p < 0.001) is more significant 
than influence of  high-involvement HRM practices on 
knowledge sharing ( = 0.261; p < 0.05). 
The findings in Table 4 also confirmed the positive effect 
of  knowledge sharing activities on innovation capability 
(= 0.564; p < 0.001). Accordingly, H3 is supported. This 
finding revealed that knowledge sharing significantly 
predict organizational capability for innovation.

Indirect effect and total effect 
The paper does not just give evidence about the direct 
influences of  high-involvement and high-commitment 
HRM practices on innovation capability. It also 
demonstrates how knowledge sharing activities mediate 
the relationship between specific models of  HRM 
practices and innovation capability. 
According to the recommendation of  Preacher and 
Hayes (2008), to show the evidence for the mediating 
role of  knowledge sharing between HRM practices and 
innovation capability, the paper has applied procedure 
of  bootstrap confidence intervals with 3,000 iterations 
to examine and assert the indirect effects’ immensity and 

Table 5: Test for indirect effects

Path Direct 
effects

Indirect
effects

Total 
effects

Bias-corrected confidence intervals

Lower confidence level Upper confidence level
IHRM KS IC 0.263*** 0.147** 0.410*** 0.049 0.255
CHRM KS IC 0.027 0.235*** 0.262** 0.236 0.365
Note: ***P < 0.001; **P < 0.05; *P < 0.1.

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statistical significance. The results are shown in the Table 5. 
Table 5 showed indirect effects of  high-involvement 
HRM practices (= 0.147; p < 0.05) and high-commitment 
HRM practices ( = 0.235; p < 0.001) on innovation 
capability are statistically significant and lies in the 
confidence interval. Consequently, hypothesis H4a.b is 
significantly supported. In other words, the empirical 
result has firstly confirmed that employees’ knowledge 
sharing activities significantly mediate the effects of  high-
involvement and high-commitment HRM practices on 
innovation capability. 

DISCUSSIONS
The extant literature emphasizes that innovation is a key 
driver for firms’ ability to survive in dynamic and intensely 
competitive environments (Le & Lei, 2019; Nguyen et al., 
2022; Than et al., 2023). Accordingly, improving innovation 
capability has been recognized as a crucial factor for firms 
to cope with the challenges of  uncertainty, increasingly 
competition, and attaint competitive advantage in the 
context of  the rapid changes of  business environment, 
industrial revolution, pursuing globalization, digitalization 
and free trade agreements (Le & Lei, 2018; Ha et al., 2019; 
Nguyen et al., 2019; Le, 2021). Thus, how to successfully 
improve innovation capability for firms is always a top 
concern of  scholars and practitioners. By investigating 
and highlighting the roles of  specific models of  HRM 
practices and knowledge sharing activities as the important 
determinants of  innovation capability, the paper has 
considerably contributed to advancing the development 
of  theories of  HRM, knowledge management and 
innovation management as following reasons.
First, due to the important role of  HRM practices in 
fostering innovation capability, scholars emphasized the 
need of  examining this relationship which have not been 
explicitly studied (Cao et al., 2022; Than et al., 2023). By 
investigating the effects of  high-involvement and high-
commitment HRM practices on innovation capability, the 
paper significantly contributes to filling the theoretical 
gaps, and highlights that high-involvement HRM 
practice is one of  the most optimal solutions for firms 
to stimulate innovation capability. Specifically, contrary 
to the effect of  high-commitment HRM practices on 
innovation capability which is not statistically significant, 
the empirical findings reveal that influences of  high-
involvement HRM practices on innovation capability 
is significantly and positively. The findings imply that 
CEOs and managers of  Vietnamese firms should pay 
much attention to practicing high-involvement HRM for 
strongly stimulating its capability for innovation. 
Second, an important contribution of  this study is that 
providing deeper insight on the relationship between 
knowledge sharing activities of  employees and innovation 
capability. The empirical findings have verified the 
correlation among latent variables in the proposal model 
and confirmed the key role of  knowledge sharing in 
stimulating innovation capability of  firms in the context 
of  firms in developing market like Vietnam. Generally, 

the findings on relationships between these constructs 
have brought many specific and useful guides for firms to 
enhance innovation capability. The findings revealed that 
to pursuit innovation capability, firms should focus on 
fostering the willingness of  employees toward knowledge 
sharing activities such as encouraging employees to 
discuss work-related matters, share their knowledge 
and experience with others, answer the questions of  
colleagues as well as they can, record as much as possible 
in writing a document or a report, offer colleagues the 
needed information and documents as their demands, 
and show the colleagues how to solve their problems or 
tell them where to look for assistance.
Finally, although literature has paid attention to addressing 
the relationship between HRM practices and innovation 
outcomes, the insights and causal mechanisms of  this 
link is not yet fully understood. This study has, therefore, 
contributed to addressing these issues based developing 
a proposal research model to examine the potential 
mediating mechanism of  knowledge sharing between 
two specific models of  HRM practices (high-involvement 
HRM and high commitment practices) and innovation 
capability. The findings of  this study have verified the 
mediating effect of  KS behaviors and revealed that both 
forms of  HRM practices can be appropriate choices for 
firms in the developing nations to nurture innovation 
capability directly or indirectly through its effects on KS 
activities of  employees.

CONCLUSION
Beside significant contributions, the paper still has 
some certain limitations. First, the paper used cross-
sectional design, thus it might expose the cases 
that causal correlations might alter in the long-run. 
Therefore, longitudinal studies are necessary to surpass 
this restriction and confirm the findings of  this study. 
Second, the paper is only performed in the circumstances 
of  medium and small firms, so the future work should 
examine the relationship among the latent factors in the 
broader circumstances to provide more meaning for firms.
Finally, in the emerging and developing countries, frugal 
innovation is one of  the reasonable and optimal strategies 
for firms to face with the context of  resource-constraints 
and environmental turbulences (Le, 2021; Lei et al., 2021; 
Le et al., 2022). Originating from the undeniable influence 
of  HRM practices and KS processes on innovation, this 
paper calls future studies for examining the potential 
mediating mechanisms of  KS processes between specific 
forms of  HRM practices and frugal innovation. Overall, 
the paper has shown the empirical evidence to spotlight 
that HRM practices and employees’ KS activities 
significantly contribute to foster innovation capability for 
firms in developing markets. 
The paper has significantly advanced the innovation 
management theory by offering an integrative model and 
effective pathway for pursuing innovation capability via 
practicing high-involvement and high-commitment HRM 
to stimulating KS of  employees in organizations.

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