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The Importance of Sectoral Differences in the Application of Complementary HRM Practices for Innovation Performance

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Keld Laursen

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Abstract

Recent theoretical and empirical analysis in the field of economic organization has focused almost exclusively on identifying organizational practices and complementarities between such practices, without regard for the type of activity in question. However, organizational theory suggests that more knowledge-intensive production activities often involve higher degrees of strategic uncertainty for firms and performance ambiguity in relation to individual employees. Therefore, the 'organic' or 'clan' form of organization - involving the application of 'new' HRM practices - is expected to perform better within knowledge-intensive sectors of the economy, as compared to other sectors. A sample of 726 Danish firms with more than 50 employees in manufacturing and private services is studied. The results show that HRM practices are more effective in influencing innovation performance when applied together, as compared with situations in which individual practices are applied alone. In other words, organizational complementarities obtain. Moreover, the application of complementary HRM practices is more effective for firms in knowledge-intensive industries ('high' and 'medium' knowledge-intensive industries).

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Article provided by Taylor and Francis Journals in its journal International Journal of the Economics of Business.

Volume (Year): 9 (2002)
Issue (Month): 1 (February)
Pages: 139-156
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Handle: RePEc:taf:ijecbs:v:9:y:2002:i:1:p:139-156

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Related research
Keywords: Human Resource Management Practices; Organisational Complementarities; Innovation Performance;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  8. Keld Laursen & Nicolai J. Foss, . "New HRM Practices, Complementarities, and the Impact on Innovation Performance," IVS/CBS Working Papers 00-5, Department of Industrial Economics and Strategy, Copenhagen Business School. [Downloadable!]
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  13. Ichniowski, Casey & Shaw, Kathryn & Prennushi, Giovanna, 1997. "The Effects of Human Resource Management Practices on Productivity: A Study of Steel Finishing Lines," American Economic Review, American Economic Association, vol. 87(3), pages 291-313, June. [Downloadable!] (restricted)
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  15. Aoki, Masahiko, 1990. "Toward an Economic Model of the Japanese Firm," Journal of Economic Literature, American Economic Association, vol. 28(1), pages 1-27, March. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Peter Nielsen & Bengt-Åke Lundvall, 2003. "Innovation, Learning Organizations and Industrial Relations," DRUID Working Papers 03-07, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
  2. Nicolai J. Foss, 2002. "'Coase vs Hayek': Economic Organization and the Knowledge Economy," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 9(1), pages 9-35, February. [Downloadable!] (restricted)
    Other versions:
  3. Anker Lund Vinding, 2006. "Absorptive capacity and innovative performance: A human capital approach," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 15(4-5), pages 507-517, June. [Downloadable!] (restricted)
  4. Nicolai J. Foss & Keld Laursen, 2002. "Performance Pay, Delegation, and Multitasking under Uncertainty and Innovativeness An Empirical Investigation," DRUID Working Papers 02-14, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
    Other versions:
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