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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

Abstract

Recent theoretical and empirical analysis in the field of economic organisation has focussed almost exclusively on identifying organisational practices and complementarities between such practices, invariant to the type of activity in question. However, this paper takes its point of departure in the observation from organisational theory 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 organisation — involving the application of “new” HRM practices — is expected to yield a higher outcome in terms of performance within knowledge-intensive sectors of the economy, as compared to other sectors. Moreover, knowledge-intensive activities are likely to require the utilisation of local knowledge to a higher degree than less knowledge-intensive activities. Given that the application of new HRM practices is one way of supporting such local knowledge, it should also for this reason be expected that the application of HRM practices are more effective for knowledge-intensive production activities. A sample of 726 Danish firms with more than 50 employees in manufacturing and private services is applied. The results show that HRM practices are more effective in influencing innovation performance when applied together, rather than when applied alone. In other words, organisational complementarities obtain. Moreover, it is shown that the application of (complementary) HRM practices is more effective in what is normally perceived to be more knowledge-intensive sectors as compared to less knowledge-intensive sectors.

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Bibliographic Info

Paper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 01-11.

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Date of creation: 2001
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Handle: RePEc:aal:abbswp:01-11

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Web page: http://www.druid.dk/

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Keywords: human resource management practices; organisational complementarities; innovation performance;

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Citations

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Cited by:
  1. Arnaldo Camuffo, 2002. "The Changing Nature of Internal Labor Markets," Journal of Management and Governance, Springer, vol. 6(4), pages 281-294, December.
  2. MIRONESCU, Alexandra & STEPIEN, Sebastian, 2012. "SMS’s INNOVATION AND HUMAN RESOURCES MANAGEMENT," Holistic Marketing Management Journal, Holistic Marketing Management, vol. 2(4), pages 26-32, September.
  3. Anker Lund Vinding, 2006. "Absorptive capacity and innovative performance: A human capital approach," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 507-517.
  4. Marcin W. Staniewski, 2011. "Management of Human Resources in the Aspect of Innovativeness," Contemporary Economics, University of Finance and Management in Warsaw, vol. 5(1), March.
  5. Ari Jantunen & Kaisu Puumalainen & Sami Saarenketo & Kalevi Kyläheiko, 2005. "Entrepreneurial Orientation, Dynamic Capabilities and International Performance," Journal of International Entrepreneurship, Springer, vol. 3(3), pages 223-243, September.
  6. Nicolai J. Foss, . ""Coase vs Hayek": Economic Organization in the Knowledge Economy," IVS/CBS Working Papers 2001-6, Department of Industrial Economics and Strategy, Copenhagen Business School.
  7. 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.
  8. Jesús Perdomo & Oswaldo Heredia & Carlos Valencia & Javier González y Jesús Galende, 2011. "La gestión de recursos humanos enfocada en la calidad total y la innovación," VNIVERSITAS ECONÓMICA 008303, UNIVERSIDAD JAVERIANA - BOGOTÁ.
  9. 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.
  10. Craig Boardman & Denis Gray, 2010. "The new science and engineering management: cooperative research centers as government policies, industry strategies, and organizations," The Journal of Technology Transfer, Springer, vol. 35(5), pages 445-459, October.
  11. Antonioli, Davide & Mancinelli, Susanna & Mazzanti, Massimiliano, 2013. "Is environmental innovation embedded within high-performance organisational changes? The role of human resource management and complementarity in green business strategies," Research Policy, Elsevier, vol. 42(4), pages 975-988.
  12. Mavis Chen & Carol Lin & Hsing-Er Lin & Edward McDonough, 2012. "Does transformational leadership facilitate technological innovation? The moderating roles of innovative culture and incentive compensation," Asia Pacific Journal of Management, Springer, vol. 29(2), pages 239-264, June.
  13. 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.

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