Improving Creativity and Innovation Through Human Resource Management Practices: Integration of Social and Componential Approach

The process of generating new ideas and its application has become the foundation for achieving competitive advantage among firms, which has propelled many organizations to actively seek for novel ways in their operations. In the recent past, there has been a call for defining and formulating an interdisciplinary framework of model integrating individual, environmental and organizational structural factors for a holistic understanding of what drives innovation at the firm level. This paper integrates the social exchange and componential views, stressing the significant of individual, contextual and organisational factors in explaining the phenomenon of innovation. Specifically, it develops an integrative conceptual framework explaining how social exchange process and components necessary to drive creativity and innovation within organization, through integration of human resources management (HRM) practices as input to promote positive work environment to foster creativity and innovation. On the basis of the above, this paper, therefore, attempts systematic reviews of major theoretical paradigms and reflections on how organizations can combine the norms of reciprocity, trust, investment in human capital and work environment with innovation components through adoption of innovative HRM practice to deliver successful innovation.