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Knowledge strategies, firm types, and complementarity in human-resource practices

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Author Info
Keld Laursen
Volker Mahnke

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Abstract

This paper argues that complementary human resource practices play an important role in the development of a knowledge-based theory of firm differences. We find that firm types and knowledge strategies impact combinations of human resource practices employed in support of current activity systems and innovation. While recent evidence suggests that consistency among human resource practices is conducive, e.g. for productivity increases, research on complementarities among human resource management practices remains sparse, and focussed on single industries or firms. Additionally, little is known whether and how human resource practices support activity systems in different firm types and innovation. This paper addresses this gap by investigating the impact of firm type, knowledge strategies pursued, and external linkages on the application of complementarity human resource practices in a multisectoral sample of 684 manufacturing and 1,216 non-manufacturing firms. We develop hypotheses from the knowledge-based perspective, the theory of complementarity, and the strategic human resource literature. Our results support prior findings about complementarity between human resource practices, but complementarity effects differ in strength. Additionally, combinations of practices applied differ significantly with contingency factors such as knowledge strategies pursued and firm type. Thus, calling for a stronger integration between strategic management and human resource management.

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Paper provided by Department of Industrial Economics and Strategy, Copenhagen Business School in its series IVS/CBS Working Papers with number 00-8.

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Handle: RePEc:ivs:iivswp:00-8

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Related research
Keywords: Human resource management practices; complementarieties; knowledge strategies;

Find related papers by JEL classification:
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior
D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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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. 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)
  2. Arora, Ashish & Gambardella, Alfonso, 1990. "Complementarity and External Linkages: The Strategies of the Large Firms in Biotechnology," Journal of Industrial Economics, Blackwell Publishing, vol. 38(4), pages 361-79, June. [Downloadable!] (restricted)
  3. Colombo, Massimo G & Mosconi, Rocco, 1995. "Complementarity and Cumulative Learning Effects in the Early Diffusion of Multiple Technologies," Journal of Industrial Economics, Blackwell Publishing, vol. 43(1), pages 13-48, March. [Downloadable!] (restricted)
  4. Holmstrom, Bengt & Milgrom, Paul, 1994. "The Firm as an Incentive System," American Economic Review, American Economic Association, vol. 84(4), pages 972-91, September. [Downloadable!] (restricted)
  5. Mahoney, Joseph T., 1995. "The management of resources and the resource of management," Journal of Business Research, Elsevier, vol. 33(2), pages 91-101, June. [Downloadable!] (restricted)
  6. Richard Harris & Mary Trainor, 2005. "Innovations and R & D in Northern Ireland Manufacturing: A Schumpeterian Approach," Regional Studies, Taylor and Francis Journals, vol. 29(7), pages 593-604, April. [Downloadable!] (restricted)
  7. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December. [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. 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)
  2. Keld Laursen & Volker Mahnke & Per Vejrup-Hansen, 2005. "Do Differences Make a Difference? The Impact of Human Capital Diversity, Experience and Compensation on Firm Performance in Engineering Consulting," DRUID Working Papers 05-04, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
  3. 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!]
  4. Paul Muller, 2006. "Reputation, trust and the dynamics of leadership in communities of practice," Journal of Management and Governance, Springer, vol. 10(4), pages 381-400, November. [Downloadable!] (restricted)
  5. Brian Cozzarin & Jennifer Percival, 2006. "Complementarities between organisational strategies and innovation," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 15(3), pages 195-217, April. [Downloadable!] (restricted)
  6. Mahnke, Volker & Verzin, Markus, 2004. "Knowledge Management Systems Design," Working Papers 2004-17, Copenhagen Business School, Department of Informatics. [Downloadable!]
  7. 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!]
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