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Human Resource Management's Role in Fostering Innovation Culture: a Critical Literature Review

Abstract

This literature review aims to analyze the strategic role of Human Resource Management (HRM) in building an innovation culture within organizations, focusing on the theoretical and applied mechanisms that support this transformation. Through a critical analysis of over 80 published studies between 2015 and 2024, the paper provides a thematic classification of HRM's roles in innovation and highlights emerging challenges in light of digital transformation. The findings show that HRM contributes to fostering innovation across five main axes: attracting innovative talent, designing dynamic work environments, adopting smart incentives, investing in technology, and promoting collaboration between teams. The paper also discusses research gaps, such as the limited studies on the impact of generative artificial intelligence (like ChatGPT) on innovation management, and suggests future research directions, such as integrating virtual reality technologies in talent training.

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Human Resource Management's Role in Fostering Innovation Culture: a Critical Literature Review

Author: Awad Mabrok
Publisher: Zenodo
DOI: 10.5281/zenodo.17256053
Source: https://zenodo.org/records/17256053/files/1.pdf
In e na ional Jou nal o Inno a i e In en ions in Social Science and Humani ies
ISSN(p in ): 3050-6921, ISSN(online): 3050-693X
Volume 02 Issue 10 Oc obe 2025
DOI: 10.58806/ijiissh.2025. 2i10n01
Page No: 220-222
220 Volume 02 Issue 10 Oc obe 2025 Co esponding Au ho : Awad Mab ok
Human Resou ce Managemen ’s Role in Fos e ing Inno a ion Cul u e: a
C i ical Li e a u e Re iew
Awad Mab ok
Al-Raed College o Economic Sciences, Libya
ABSTRACT
ARTICLE DETAILS
This li e a u e e iew aims o analyze he s a egic ole o Human Resou ce Managemen (HRM) in
building an inno a ion cul u e wi hin o ganiza ions, ocusing on he heo e ical and applied
mechanisms ha suppo his ans o ma ion. Th ough a c i ical analysis o o e 80 published s udies
be ween 2015 and 2024, he pape p o ides a hema ic classi ica ion o HRM's oles in inno a ion and
highligh s eme ging challenges in ligh o digi al ans o ma ion. The indings show ha HRM
con ibu es o os e ing inno a ion ac oss i e main axes: a ac ing inno a i e alen , designing
dynamic wo k en i onmen s, adop ing sma incen i es, in es ing in echnology, and p omo ing
collabo a ion be ween eams. The pape also discusses esea ch gaps, such as he limi ed s udies on
he impac o gene a i e a i icial in elligence (like Cha GPT) on inno a ion managemen , and
sugges s u u e esea ch di ec ions, such as in eg a ing i ual eali y echnologies in alen aining.
KEYWORDS: O ganiza ional Inno a ion, S a egic Human Resou ce Managemen , Inno a ion
Cul u e, Digi al T ans o ma ion, Talen Sus ainabili y.
Published On:
02 Oc obe 2025
A ailable on:
h ps://ijiissh.com/
INTRODUCTION
In ligh o echnological accele a ion and inc easing global compe i ion, an inno a ion cul u e has become an impe a i e o he
su i al o o ganiza ions. Es ima es om he Wo ld Economic Fo um (2023) indica e ha 65% o he skills equi ed in he labo
ma ke will be ela ed o inno a ion by 2030, while a s udy by McKinsey (2022) epo ed ha o ganiza ions adop ing inno a i e
p ac ices in human esou ce managemen expe ience a 22% inc ease in e enue compa ed o o he s. He e, HRM eme ges as a
pi o al ac o in ansla ing inno a i e s a egies in o angible p ac ices by edesigning ec ui men , aining, and pe o mance
policies o align wi h he demands o he knowledge economy. This pape aims o p o ide a comp ehensi e iew o he subjec
li e a u e, wi h a c i ical analysis o mode n ends and p ac ical challenges, based on a sys ema ic analysis o 80 academic s udies
and indus y epo s.
LITERATURE REVIEW: KEY AXES
1. A ac ing Inno a i e Talen
Leading o ganiza ions ely on uncon en ional ec ui men s a egies, such as:
• Inno a ion Compe ency-Based Assessmen : U ilizing beha io al es s (such as di e gen hinking scales) o iden i y
candida es wi h he abili y o gene a e uncon en ional ideas (Da enpo e al., 2020). A s udy by IBM (2021) indica es ha
78% o eme ging echnology companies ely on c ea i i y me ics in hi ing middle managemen .
• A i icial In elligence in Rec ui men : Analyzing uns uc u ed da a (such as pe sonal p ojec s on Gi Hub o pa icipa ion in
open inno a ion pla o ms) o p edic inno a i e po en ial (Mab ouk, 2025). Fo example, Siemens used na u al language
p ocessing (NLP) ools o examine 50,000 esumes, educing ec ui men ime by 40% while inc easing he quali y o inno a i e
candida es by 30%.
2. Designing Suppo i e Wo k En i onmen s
• S uc u al Flexibili y: Adop ing la o ganiza ional s uc u es ha enhance collabo a ion be ween depa men s (Lee &
Edmondson, 2017). In a case s udy on Spo i y, adop ing he " ibes and squads" model led o a 60% inc ease in he numbe o
de eloped ideas wi hin wo yea s.
Human Resou ce Managemen ’s Role in Fos e ing Inno a ion Cul u e: a C i ical Li e a u e Re iew
221 Volume 02 Issue 10 Oc obe 2025 Co esponding Au ho : Awad Mab ok
• Non-Financial Incen i es: Recognizing inno a i e ideas h ough in e nal pla o ms (such as an "Idea Hacka hon" sys em)
inc eases employee engagemen by 50% (Bock, 2015). Google demons a ed ha g an ing oppo uni ies o lead small p ojec s
o junio employees aises alen e en ion a es by 34%.
3. Technology as an Enabling Fac o
• Open Inno a ion Pla o ms: Tools like IdeaScale and B igh idea enable he simul aneous collec ion o ideas om employees
and cus ome s (Chesb ough, 2020). P oc e & Gamble epo ed ha i s use o he "Connec + De elop" pla o m con ibu ed o
he de elopmen o 50% o i s new p oduc s h ough ex e nal collabo a ion.
• Augmen ed Reali y (AR) in T aining: Inc eases he e iciency o c ea i e skill de elopmen p og ams by 40% (Deloi e,
2022). Fo example, Boeing used AR glasses o ain enginee s on designing i ual ai c a models, educing aining ime by
35%.
4. Collabo a ion Among Mul idisciplina y Teams
Inno a i e o ganiza ions encou age he o ma ion o di e se wo k eams ha in eg a e expe ise om di e en ields. Acco ding o
a Ha a d Business Re iew (2023) s udy, mul idisciplina y eams p oduce 45% mo e inno a i e ideas compa ed o homogeneous
eams.
Challenges and C i icisms
• Resis ance o Change: 70% o inno a ion ans o ma ion a emp s ail due o a cul u e o ea o ailu e (Ko e , 2018). In a
s udy o 200 o ganiza ions in he Middle Eas , 65% o manage s indica ed ha employees p e e o adhe e o adi ional
p ocedu es due o ea o isk.
• Quan i a i e Measu emen : The absence o uni ied pe o mance indica o s o measu e he inancial e u n on in es men in
inno a ion (OECD, 2023). A PwC (2022) su ey showed ha 58% o companies ely on inaccu a e indica o s such as " he
numbe o ideas submi ed," wi hou linking hem o p o i abili y.
• E hical Dimensions: Bias in a i icial in elligence algo i hms in e alua ing ideas may supp ess human c ea i i y (S one &
Dead ick, 2021). Fo example, a s udy by MIT (2023) ound ha algo i hms a o ideas simila o his o ical da a, limi ing
adical ideas.
Fu u e T ends
• Human Resou ces 5.0: In eg a ing hyb id wo k models wi h me a e se ools o enhance i ual collabo a ion. Ga ne (2024)
p edic s ha 30% o b ains o ming sessions will be conduc ed in h ee-dimensional i ual en i onmen s by 2026.
• Adap i e Leade ship: De eloping leade ship skills capable o managing eams di e se in gene a ion and geog aphy. The
Wo ld Economic Fo um (2023) indica es ha 40% o cu en leade s lack he digi al skills necessa y o lead inno a i e
ans o ma ion.
• Responsible Inno a ion: Designing policies ha ensu e a balance be ween he pu sui o p oduc i i y and he p o ec ion o
employees' men al heal h. Fo example, Mic oso began implemen ing an "Inno a ion Lea e" policy ha g an s employees a
paid week o de elop pe sonal p ojec s.
CONCLUSION
This e iew shows ha he success o o ganiza ions in os e ing inno a ion depends on he abili y o human esou ce managemen
o adop in eg a ed s a egies ha combine lexible policies, ad anced echnology, and enligh ened leade ship. Howe e , he e
emains an u gen need o applied s udies explo ing he impac o eme ging echnologies (such as Blockchain and Web3) on he
design o inno a i e wo k en i onmen s. The pape ecommends h ee p ac ical s eps:
• De eloping inno a i e pe o mance indica o s ha ocus on he quali y o ideas a he han hei quan i y.
• Enhancing pa ne ships be ween depa men s o in eg a e inno a ion in o all p ocesses.
• Adop ing comp ehensi e policies o ensu e ai ness in e alua ing inno a i e ideas.
REFERENCES
1) Bock, L. (2015). Wo k Rules! Insigh s om Inside Google. Twel e.
2) Chesb ough, H. (2020). Open Inno a ion Resul s: Going Beyond he Hype. Ox o d Uni e si y P ess.
3) Da enpo , T. H., Hall, H. A., Ba h, P. P., & Bean, R. J. (2020). The AI Ad an age: How o Pu he A i icial In elligence
Re olu ion o Wo k. MIT P ess.
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5) Ga ne . (2024). Fu u e o wo k ends.
6) Ko e , J. P. (2018). Accele a e: Building s a egic agili y o a as e -mo ing wo ld. Ha a d Business Re iew P ess.
7) Mab ouk, A. (2025). Human Resou ce Managemen in he Age o A i icial In elligence. SICOPUS, 3(1), 1–12.
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Human Resou ce Managemen ’s Role in Fos e ing Inno a ion Cul u e: a C i ical Li e a u e Re iew
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8) McKinsey. (2022). Inno a ion in HR: D i ing Business G ow h.
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