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Human resource management for learning through knowledge exploitation and knowledge exploration: Pharmaceuticals in Mexico

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  • Santiago, Fernando
  • Alcorta, Ludovico

Abstract

This paper investigates the influence of human resource management practices on the likelihood that a firm performs in-house R&D. R&D is broadly interpreted as learning—a mechanism promoting absorptive capacity and supporting technology capability-building. Firms can choose between two learning strategies: they can exploit existing knowledge, or perform more complex explorations and acquire new knowledge. Different knowledge requirements associate with distinct R&D outcomes with varying degrees of novelty for the firm. Findings are supported with evidence from the pharmaceutical industry in Mexico. The analysis reveals positive linkages between human resource management practices and learning at firm level. The relationship is contingent on factors such as expected R&D outcomes, or the novelty of the knowledge required by the firm. The provision of training revealed the more consistent, positive influence on the likelihood that pharmaceuticals firms perform R&D in Mexico.

Suggested Citation

  • Santiago, Fernando & Alcorta, Ludovico, 2012. "Human resource management for learning through knowledge exploitation and knowledge exploration: Pharmaceuticals in Mexico," Structural Change and Economic Dynamics, Elsevier, vol. 23(4), pages 530-546.
    • Handle: RePEc:eee:streco:v:23:y:2012:i:4:p:530-546
    DOI: 10.1016/j.strueco.2011.11.002
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    References listed on IDEAS

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    Cited by:

    1. Chigu Kim & Chul Lee & Jina Kang, 2018. "Determinants Of Firm’S Innovation-Related External Knowledge Search Strategy: The Role Of Potential Absorptive Capacity And Appropriability Regime," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(06), pages 1-33, August.
    2. Barba-Aragón, María Isabel & Jiménez-Jiménez, Daniel, 2020. "HRM and radical innovation: A dual approach with exploration as a mediator," European Management Journal, Elsevier, vol. 38(5), pages 791-803.
    3. Eriksson, Tor & Qin, Zhihua & Wang, Wenjing, 2014. "Firm-level innovation activity, employee turnover and HRM practices — Evidence from Chinese firms," China Economic Review, Elsevier, vol. 30(C), pages 583-597.
    4. Humberto Merritt, 2015. "The Role of Human Capital in University-Business Cooperation: The Case of Mexico," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(3), pages 568-588, September.

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    More about this item

    Keywords

    R&D; Learning and innovation; Human resource management; Pharmaceuticals; Mexico;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics

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