This conceptual article examines how HRM practices become the social infrastructure of knowledge management and innovation capacity. It distinguishes knowledge as a resource, knowledge management as a process, HRM as a practice system and innovation capacity as an organisational capability. The article develops a mechanism-based model in which HRM practices shape knowledge-sharing capability, knowledge-sharing capability mediates the HRM-innovation relationship, digital transformation moderates required competencies and ethical-institutional conditions determine whether innovation creates legitimate value.

Keywords: human resource management; knowledge management; innovation capacity; knowledge sharing; AI transformation; organisational learning