Innovation as a corporate entrepreneurial outcome in newly established firms: a human resource-based view
AbstractThe study presented here explores innovation as a corporate entrepreneurial outcome in recently established small firms. More precisely, we explore the role of upper echelon and employee human capital and human resources management as determinants of innovation. Our approach builds on a 'human resource'-based view, stressing the importance of (1) entrepreneur/entrepreneurial team ('upper echelon') human resources and (2) employee human resources and their management in determining the innovation performance of start-ups. As innovation is one of the three possible outcomes of corporate entrepreneurship (innovation, venturing and renewal), we take a corporate entrepreneurship research approach in examining innovation in start-ups. The analyses are based on a sample of 294 start-ups covering a wide range of economic activities, having 1 to 49 employees and being in their second year of life in 2003. The results indicate that both types of human capital do matter in the context of start-up innovation. First of all, employee human capital and HRM have a strong positive effect on innovation. Second, while we could not trace direct effects of entrepreneur/entrepreneurial team human capital on innovation, indirect effects (via HRM or employee human capital) of for instance education level and business advice are indisputably present. All things considered, the study teaches us that valuing human capital in start-ups can contribute to a considerable extent to preserving their innovation performance, thus stimulating their chances of building a viable business model and safeguarding future growth and further development.
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 Katholieke Universiteit Leuven in its series Open Access publications from Katholieke Universiteit Leuven with number urn:hdl:123456789/383192.
Date of creation: 2005
Date of revision:
Contact details of provider:
Web page: http://www.kuleuven.be
HRM; Innovation; Upper echelon; Start-ups;
Other versions of this item:
- Maes, Johan & Sels, Luc & De Winne, Sophie, 2005. "Innovation as a corporate entrepreneurial outcome in newly established firms: A human resource-based view," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/122822, Katholieke Universiteit Leuven.
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.:
- Antoncic, Bostjan & Hisrich, Robert D., 2001. "Intrapreneurship: Construct refinement and cross-cultural validation," Journal of Business Venturing, Elsevier, vol. 16(5), pages 495-527, September.
- Fama, Eugene F, 1980. "Agency Problems and the Theory of the Firm," Journal of Political Economy, University of Chicago Press, vol. 88(2), pages 288-307, April.
- Bartel, Ann P & Lichtenberg, Frank R, 1987. "The Comparative Advantage of Educated Workers in Implementing New Technology," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 1-11, February.
- Bates, Timothy, 1990. "Entrepreneur Human Capital Inputs and Small Business Longevity," The Review of Economics and Statistics, MIT Press, vol. 72(4), pages 551-59, November.
- Zahra, Shaker A. & Covin, Jeffrey G., 1995. "Contextual influences on the corporate entrepreneurship-performance relationship: A longitudinal analysis," Journal of Business Venturing, Elsevier, vol. 10(1), pages 43-58, January.
- Maes, Johan, 2004. "The search for corporate entrepreneurship: a clarification of the concept and its measures," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/85361, Katholieke Universiteit Leuven.
- Zahra, Shaker A., 1991. "Predictors and financial outcomes of corporate entrepreneurship: An exploratory study," Journal of Business Venturing, Elsevier, vol. 6(4), pages 259-285, July.
- Zahra, Shaker A., 1993. "Environment, corporate entrepreneurship, and financial performance: A taxonomic approach," Journal of Business Venturing, Elsevier, vol. 8(4), pages 319-340, July.
- Cooper, Arnold C. & Gimeno-Gascon, F. Javier & Woo, Carolyn Y., 1994. "Initial human and financial capital as predictors of new venture performance," Journal of Business Venturing, Elsevier, vol. 9(5), pages 371-395, September.
- Keld Laursen, 2002.
"The Importance of Sectoral Differences in the Application of Complementary HRM Practices for Innovation Performance,"
International Journal of the Economics of Business,
Taylor and Francis Journals, vol. 9(1), pages 139-156.
- Keld Laursen, 2001. "The Importance of Sectoral Differences in the Application of (Complementary) HRM Practices for Innovation Performance," DRUID Working Papers 01-11, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Li-min Hsueh & Ying-yi Tu, 2004. "Innovation and the Operational Performance of Newly Established Small and Medium Enterprises in Taiwan," Small Business Economics, Springer, vol. 23(2), pages 99-113, 09.
- Zahra, Shaker A., 1995. "Corporate entrepreneurship and financial performance: The case of management leveraged buyouts," Journal of Business Venturing, Elsevier, vol. 10(3), pages 225-247, May.
- Yuval Deutsch & Thomas W. Ross, 2003. "You are Known by the Directors You Keep: Reputable Directors as a Signaling Mechanism for Young Firms," Management Science, INFORMS, vol. 49(8), pages 1003-1017, August.
- Edward J. Zajac & Brian R. Golden & Stephen M. Shortell, 1991. "New Organizational Forms for Enhancing Innovation: The Case of Internal Corporate Joint Ventures," Management Science, INFORMS, vol. 37(2), pages 170-184, February.
- Keld Laursen & Nicolai J. Foss, 2003. "New human resource management practices, complementarities and the impact on innovation performance," Cambridge Journal of Economics, Oxford University Press, vol. 27(2), pages 243-263, March.
- Bruyat, Chirstian & Julien, Pierre-Andre, 2001. "Defining the field of research in entrepreneurship," Journal of Business Venturing, Elsevier, vol. 16(2), pages 165-180, March.
- Dimov, Dimo P. & Shepherd, Dean A., 2005. "Human capital theory and venture capital firms: exploring "home runs" and "strike outs"," Journal of Business Venturing, Elsevier, vol. 20(1), pages 1-21, January.
- Begley, Thomas M. & Boyd, David P., 1987. "Psychological characteristics associated with performence in entrepreneurial firms and smaller businesses," Journal of Business Venturing, Elsevier, vol. 2(1), pages 79-93.
- Kathryn Shaw, 2004. "The Human Resources Revolution: Is It a Productivity Driver?," NBER Chapters, in: Innovation Policy and the Economy, Volume 4, pages 69-114 National Bureau of Economic Research, Inc.
- Lumpkin, G. T. & Dess, Gregory G., 2001. "Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle," Journal of Business Venturing, Elsevier, vol. 16(5), pages 429-451, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carl Demeyere).
If references are entirely missing, you can add them using this form.