In the context of the Vietnamese cultural industry facing the need to transform its operating model to adapt to the trend of creative economy and digital technology, organizational innovation has become an inevitable requirement. However, the ability to innovate depends largely on how the organization manages and develops creative human resources, a factor that is highly specific to the cultural sector. Based on the theoretical and practical gap in the relationship between human resource management and innovation capacity in the cultural industry, this study aims to determine the role of HRM practice groups (capacity building, motivation, creative expression empowerment) on the organization's innovation capacity, and at the same time clarify the mediating role of the organizational environment supporting creativity. Based on the AMO theoretical framework, the research model was tested using the PLS-SEM method with survey data from 305 cultural personnel nationwide. The results indicate that all HRM practice groups have a significant impact on innovation capacity, of which creating opportunities for innovation is the strongest factor. Creative environment is confirmed as an important mediating mechanism, effectively connecting HRM and innovation outcomes. From there, the study proposes some practical policy implications in recruiting, training, empowering, and building an innovation ecosystem for the cultural sector in Vietnam.