THE IMPACT OF HR ANALYTICS CAPABILITIES ON EMPLOYEE INNOVATION: THE MEDIATING ROLE OF TALENT MANAGEMENT EFFECTIVENESS AND THE MODERATING ROLE OF TOP MANAGEMENT SUPPORT

Abstract

Organisations are investing heavily in HR analytics, yet how it translates into employee innovation remains poorly understood. Drawing on the resource-based view, dynamic capabilities theory, the ability–motivation–opportunity framework and the technology–organisation–environment framework, this study tests whether talent management effectiveness mediates the link between HR analytics capabilities and employee innovation, and whether top management support moderates the link between HR analytics capabilities and talent management effectiveness. A cross-sectional survey of HR professionals, managers and employees in mid- to large-sized firms yielded 112 usable responses. Established multi-item scales showed good internal consistency (Cronbach’s α = .809–.969). Hypotheses were tested using ordinary least squares regression, bias-corrected bootstrapped mediation analysis (5,000 resamples) and hierarchical moderated regression. HR analytics capabilities predicted employee innovation (β = .84, p < .001) and talent management effectiveness (β = .86, p < .001), and talent management effectiveness predicted employee innovation (β = .89, p < .001). The indirect effect through talent management was significant (effect = 0.60, 95% CI [0.43, 0.77]) while the direct effect remained significant, indicating partial mediation. Top management support did not moderate the analytics–talent management relationship (b = −0.05, p = .384), although it was a strong direct predictor of talent management effectiveness. The findings suggest that HR analytics fosters innovation mainly by strengthening the talent system, and that leadership support adds to, rather than amplifies, its effect. Theoretical and managerial implications, limitations and directions for future research are discussed.