Abstract
The main objective of this research is to examine whether the implementation of new human resource management practices (NHRM) can enhance innovative performance (IP) by fostering innovation capability (NC). Additionally, it examines the moderating influence of an innovative climate (IC) and its associated attributes on the association with new human resource management and innovation capability, a factor that has been relatively overlooked in prior research. The study's data was obtained from 398 employees in the pharmaceutical sector of Pakistan, and hierarchical regression analysis was utilized to analyze the data. The results from the mediating and moderating analyses underscore the significance of NHRM practices, innovation capability, and an innovative climate, along with its specific attributes, in promoting innovative performance through factors such as operational efficiency, suitable practices, and employees' willingness to participate in organizational endeavors. Furthermore, the moderated mediation analysis findings reveal that the influence of innovation capability as a mediator is strengthened when the workplace climate is more conducive to innovation. These findings have implications for both theoretical understanding and practical application, particularly in similar developing countries. The study offers insights that can be generalized to developing nations with comparable economic and social structures.