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New human resource management practices, complementarities and the impact on innovation performance

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Author Info
Keld Laursen
Nicolai J. Foss

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Abstract

In this paper, we take our theoretical point of departure in recent work in organisational economics on systems of human resource management (HRM) practices. We develop the argument that just as complementarities between new HRM practices influence financial performance positively, there are theoretical reasons for expecting them also to influence innovation performance positively. We examine this overall hypothesis by estimating an empirical model of innovation performance, using data from a Danish survey of 1,900 business firms. Using principal component analysis, we identify two HRM systems which are conducive to innovation. In the first one, seven of our nine HRM variables matter (almost) equally for the ability to innovate. The second system is dominated by firm-internal and firm-external training. Of the total of nine sectors that we consider, we find that the four manufacturing sectors correlate with the first system. Firms belonging to wholesale trade and to the ICT intensive service sectors tend to be associated with the second system. Copyright 2003, Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal Cambridge Journal of Economics.

Volume (Year): 27 (2003)
Issue (Month): 2 (March)
Pages: 243-263
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Handle: RePEc:oup:cambje:v:27:y:2003:i:2:p:243-263

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  1. Heli Koski & Luigi Marengo & Iiro Mäkinen, 2009. "Firm size, managerial practices and innovativeness: some evidence from Finnish manufacturing," LEM Papers Series 2009/01, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
  2. Susanna Mancinelli & Massimiliano Mazzanti, 2009. "Innovation, networking and complementarity: evidence on SME performances for a local economic system in North-Eastern Italy," The Annals of Regional Science, Springer, vol. 43(3), pages 567-597, September. [Downloadable!] (restricted)
  3. Jirjahn, Uwe & Kraft, Kornelius, 2006. "Do Spillovers Stimulate Incremental or Drastic Product Innovations? Hypotheses and Evidence from German Establishment Data," ZEW Discussion Papers 06-23, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  4. Andy Cosh & Xiaolan Fu & Alan Hughes, 2005. "Management characteristics, collaboration and innovative efficiency: evidence from UK survey data," ESRC Centre for Business Research - Working Papers wp311, ESRC Centre for Business Research. [Downloadable!]
  5. Nina Pološki Vokić & Maja Vidović, 2008. "HRM as a Significant Factor for Achieving Competitiveness through People: The Croatian Case," International Advances in Economic Research, Springer, vol. 14(3), pages 303-315, August. [Downloadable!] (restricted)
  6. Heli Koski & Luigi -Mäkinen Marengo, 2009. "Managerial Practices, Performance and Innovativeness: Some Evidence from Finnish Manufacturing," Discussion Papers 1176, The Research Institute of the Finnish Economy. [Downloadable!]
  7. Massimiliano Mazzanti & Susanna Mancinelli, 2007. "SME Performance, Innovation and Networking Evidence on Complementarities for a Local Economic System," Working Papers 2007.50, Fondazione Eni Enrico Mattei. [Downloadable!]
  8. Benoît Mahy & Mélanie Volral, 2008. "The effect of quantitative and qualitative training on labour demand in Belgium: a monopolistic competition approach," Economics of Education Working Paper Series 0021, University of Zurich, Institute for Strategy and Business Economics (ISU). [Downloadable!]
  9. Annalisa Cristini & Alessandro Gaj & Riccardo Leoni, 2008. "Direct and Indirect Complementarity between Workplace Reorganization and New Technology," Rivista di Politica Economica, SIPI Spa, vol. 98(2), pages 87-117, March-Apr. [Downloadable!]
  10. Estrada Vaquero, Isabel & Martín Cruz, Natalia & Pérez Santana, Pilar, 2008. "Innovation Dynamics in Multipartneralliance Teams: A Focus on Human Resource Management Fit," Documentos de Trabajo "Nuevas Tendencias en Dirección de Empresas". Working Papers "New Trends on Business Administration". 2008-05, Interuniversitary Doctorate Program "New Trends on Business Administration", Universities of Valladolid, Burgos and Salamanca (Spain). Programa de Doctorado Interuniversitario "Nuevas Tendencias en Di. [Downloadable!]
  11. Paolo Pini & Grazia Santangelo, 2005. "Innovation types and labour organisational practices: A comparison of foreign and domestic firms in the Reggio Emilia industrial districts," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 14(4), pages 251-276, June. [Downloadable!] (restricted)
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