Strategic HRM as a Driver for Fostering Innovation in Resource-Constrained Environments: Perceptions from Selected Private Universities in Ogun State, Nigeria

Abstract

Organisational sustainability rests on the degree of how innovative its management is. Irrespective of the constraints on resources, innovation plays a significant role in salvaging such anomalies or situations. However, how much the management can leverage on employees’ capacity and capabilities to innovate remains pivotal towards fostering organisational success. For this purpose, the current study was embarked upon to interrogate strategic human resource management as a driver for fostering innovation in resource-constrained environments with perceptions from selected private universities in Ogun State, Nigeria. The study was anchored on the resource-based view theory, human capital theory and knowledge-based theory. The study employed a descriptive method of research design where data were quantitatively obtained from academic staff of six (6) selected private-owned universities in Ogun State. Findings revealed that a positive and significant relationship existed between targeted training and development and innovation with (r=0.923, p=.000); similarly, empowerment and autonomy were found to affect innovation with (r2=0.946, p=.000); furthermore, a positive and significant relationship was found between cross-functional collaboration and innovation with (r=0. 802, p-value<0.05). The study concluded that SHRM plays a cardinal role in fostering and facilitating innovations within private institutions operating within constrained environments; nevertheless, SHRM’s effectiveness is contingent upon investment in staff development, strategic alignment and stronger cross-functional collaboration systems. However, through the adoption of a tailored framework of SHRM in addressing systemic constraints, management of private institutions can positively harness their human capital to foster innovations and sustain competitive advantages.