HR‐related Knowledge Protection and Innovation Performance: The Moderating Effect of Trust

Abstract

We argue that different human resource (HR)‐related practices and mechanisms play a role with regard to knowledge and innovation protection. We further suggest that the relationship between the protective HR mechanisms—softer and harder, more or less restrictive forms—and innovation performance is affected by contingency factors, especially organizational trust. Theoretical and empirical examination indicates that the different HR mechanisms are associated with improved innovation performance. Furthermore, according to the findings, trust exerts a positive moderating effect when access to knowledge needs to be limited within the firm boundaries with the help of restrictive mechanisms and when the commitment increasing soft mechanisms are used to limit knowledge leaving. Furthermore, we find a negative moderating effect when legal, hard HR mechanisms direct the use of knowledge within the firm. Hence, the current study interprets trust as a contingency factor capable of enhancing collective understanding of the need for knowledge protection.