Human Resource Management Orientation and Market Orientation Effect on Perceived Organizational Performance Mediated by Innovation

This study has focus on human resource orientation and market orientation effect on perceived organizational performance with mediation effect of innovation. Given the centrality of those orientations and of innovation to the perceived organizational performance in both manufacturing and service industries, scholars do not focus on the missing link of innovation among the relationship of those orientations with the performance, particularly in a service industry. Thus, this study aspires to be the bridge among those variables in a highly competitive environment in developing country of whose results indicate that innovation is largely dependent on market orientation and seems to be playing a mediator role to drive perceived organizational performance in private healthcare organizations. However, it does not support the link between HRM orientations and innovation as well as perceived organizational performance. Thus, HRM orientations seem not to be a descriptive variable for and have interaction with perceived organizational performance as well as innovation although they are highly correlated to each other.