Protecting organizational competitiveness from the hazards of knowledge leakage through HRM

Purpose: Collaborative projects are useful tools for learning and innovation. However, there is an associated cost – knowledge leakage, which is theoretically linked to challenging organizational competitiveness. The purpose of this study is to examine whether knowledge-oriented human resource (HR) management practices can protect organizations from the adverse effect of knowledge leakage while investigating the moderating role of knowledge-oriented HR management practices. Design/methodology/approach: This study uses mixed methods involving collection of qualitative data through 13 qualitative interviews and quantitative data through 398 survey questionnaires. SPSS 23 and Process Macro 3.1 have been applied to test the hypotheses. Findings: The study finds that knowledge leakage adversely affects organizational competitiveness, whereas the effect of knowledge-oriented HR management practices on organizational competitiveness is positive. Further, knowledge-oriented HR practices negatively and significantly moderate the relationship between knowledge leakage and organizational competitiveness. As the strength of the moderator increases, the effect of knowledge leakage tends to diminish. Besides, demographic factors (age of the firm and industry type) do not influence the organizational competitiveness. Research limitations/implications: This study has several theoretical contributions; first, it contributes to knowledge-based view by empirically establishing the adverse effect of knowledge leakage on organizational competitiveness. Second, knowledge-oriented HR management practices increase organizational competitiveness, which is contribution to HR management literature. Lastly, knowledge-oriented HR management practices protect organizational competitiveness from the adversaries of knowledge leakage, which is contribution to strategic management literature. Practical implications: Practitioners must invest in knowledge-oriented HR management practices such as human-to-human knowledge transfer among the workers. It will increase firm-level knowledge base that will positively contribute to organizational competitiveness. In addition, such practices can evade the hostile effect of knowledge leakage. Originality/value: The conceptual model is novel as this is the first study to establish (1) the empirical relationship of knowledge-oriented HR management practices and organizational competitiveness and (2) the moderating effect of knowledge-oriented HR management practices between knowledge leakage and organizational competitiveness.