New HRM Practices, Complementarities, and the Impact on Innovation Performance
AbstractAlthough organisational structure has sometimes been mentioned in evolutionary economics as well as in the innovation literature as a possible determinant of innovation performance, very little systematic theoretical and empirical work exist on this issue. In this paper, we take our theoretical point of departure in recent work in organisational economics and elsewhere, on systems of human resource management practices. We put and develop the argument that just as complementarities between new HRM practices positively influence financial performance, they will also positively influence innovation performance. We examine this overall hypothesis by estimating an empirical model of innovation performance, using data from a Danish survey of 1900 business firms. Using principal components analysis we identify two HRM systems which are conducive to innovation. The first is one in which all of our nine HRM variables matter (almost) equally for the ability to innovate. The second system, which is found to be conducive to innovation is dominated by performance related pay and to some extent by firm-internal training. Of our total of nine sectors we find that the four manufacturing sectors correlate with the first system, while also firms located in ICT intensive service sectors are associated with the first system. Firms belonging to the wholesale trade sector tend to be associated with the second system.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Industrial Economics and Strategy, Copenhagen Business School in its series IVS/CBS Working Papers with number 00-5.
Date of creation:
Date of revision:
Contact details of provider:
Web page: http://www.cbs.dk/forskning_viden/fakulteter_institutter_centre/institutter/oekonomi/ivs/
Innovation; human resource management practices; organisational complementarities; evolutionary economics.;
Find related papers by JEL classification:
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Gérard Ballot & Fathi Fakhfakh & Fabrice Galia & Ammon Salter, 2011.
"The Fateful Triangle Complementarities between product, process and organizational innovation in the UK and France,"
- Gerard Ballot & Fathi Fakhfakh & Fabrice Gallia & Ammon Salter, 2011. "The Fateful Triangle Complementarities between product, process and organizational innovation in the UK and France," TEPP Working Paper 2011-05, TEPP.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (J. Petur Joensen) The email address of this maintainer does not seem to be valid anymore. Please ask J. Petur Joensen to update the entry or send us the correct address.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.