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Conditions for an efficient innovation process: The Complementarity between new HRM practices and Suggestion Schemes

Author

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  • Mihai Paunescu

    (Institute for Labour Law and Industrial Relations in the EC, University of Trier)

Abstract

The specific and tacit knowledge of shopfloor employees are vital sources for innovative work behaviour. Firms can use these skills to increase the efficiency of process innovation in the stages of idea generation and implementation of new processes. This study examines the necessary conditions for harnessing employees’ innovative capabilities. The first condition is the emphasis on the human resource practices that support the formation, utilization and transfer of specific knowledge. As a second condition, organizations must adopt continuous improvement practices which capitalize on the developed specific knowledge. I use the “Changing Employment Relationships” survey to test for the complementary relationship between such a specific set of human resource practices and the existence of a suggestion scheme. The results confirm that organizations which provide the framework for their employees to acquire inventive skills will be more likely to establish a suggestion scheme. Secondly, the more practices are utilized the more attractive the suggestion scheme is for the employees to submit proposals. One reason therefore is due to greater efforts in the design of the suggestion scheme.

Suggested Citation

  • Mihai Paunescu, 2005. "Conditions for an efficient innovation process: The Complementarity between new HRM practices and Suggestion Schemes," IAAEG Discussion Papers until 2011 200501, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    • Handle: RePEc:iaa:wpaper:200501
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    More about this item

    Keywords

    suggestion schemes; innovative work behaviour; user innovation; organizational learning; tacit knowledge; kaizen; continuous improvement;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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