Abstract:
This study sought to examine the relationship between human resource practice outcomes and service innovation. It also examines the moderating role of knowledge sharing in the relationship between workplace friendship and service innovation, as well as the mediating role of knowledge sharing in the relationship between job satisfaction and service innovation. The study employed survey research design. The respondents were selected from across the service industry in Ghana using convenience sampling technique. Items measuring the constructs were adapted from extant literature. Confirmatory factor analysis was performed to ascertain the validity of the measurement model. Hierarchical regression was used to analyse the data. The results show that knowledge sharing, job satisfaction, workplace friendship, and employee commitment predict service innovation. However, the interaction of workplace friendship and knowledge sharing has no effect on service innovation. Similarly, the moderation of employee commitment and job satisfaction did not make any contribution to service innovation. The findings imply that service firms must create a friendly working environment, ensuring that employees are satisfied in order to promote service innovation. It also implies that service firms must promote social activities that encourage knowledge sharing, but these social activities must relate to employees’ job. © 2017 Informa UK Limited, trading as Taylor & Francis Group.