Install node modules error

I have test directory and package.json file in it:

{
  "name": "test",
  "version": "0.0.1",
  "dependencies": { 
    "hem": "~0.1.6",
  }
}

When i try to execute node install i get following error:

module.js:337
    throw new Error("Cannot find module '" + request + "'");
          ^
Error: Cannot find module '/home/shk/test/install'
    at Function._resolveFilename (module.js:337:11)
    at Function._load (module.js:279:25)
    at Array.0 (module.js:484:10)
    at EventEmitter._tickCallback (node.js:190:38)

Why?

Thank you.