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This study examines how Chinese and Pakistani SMEs use HR Generic Strategies specifically about the mediating role of affective management that influences ‘knowledge sharing” and‘innovation performance”. It specifically focuses how HR practices adds value to knowledge sharing and innovation by providing essential assurance and dedication to workers and induce them to be enthusiastic to share their knowledge and perform well in innovation. The finding suggests that Affective Commitment mediates high-commitment, knowledge-sharing behavior and Innovation performance in SMEs. This study has also explored the level to which employees are sharing knowledge within Organizations is positive and significant influence to the Organization’s innovation performance.

KNOWLEDGE SHARING AND INNOVATION PERFORMANCE AFFECTED BY HR GENERIC STRATEGIES: AN EMPIRICAL STUDY OF SMES IN CHINA AND PAKISTAN