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HRM system strength – HRM harnessed for innovation, appropriability and firm performance


  • Pia Hurmelinna-Laukkanen
  • Jorge Gomes


HRM systems and practices can have a notable impact on a firm’s performance. Employees exchange and co-utilize innovation-generating knowledge, leading often to improvements in the firm’s financial performance, but they may also (unintentionally) give out valuable information. In this study, we discuss how HRM practices can be designed to foster innovation and at the same time maintain appropriability of innovations. We introduce the concept of HRM Strength to explain how the HRM system may affect people’s vision of what is important in a company. Questionnaire data from 69 Finnish firms were utilized. The results indicate that HRM Strength is related to financial performance, both directly and indirectly. Implications of these results are discussed and future work is suggested.

Suggested Citation

  • Pia Hurmelinna-Laukkanen & Jorge Gomes, 2012. "HRM system strength – HRM harnessed for innovation, appropriability and firm performance," Economics and Business Letters, Oviedo University Press, vol. 1(4), pages 43-53.
  • Handle: RePEc:ove:journl:aid:9668

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    1. Liebeskind, Julia Porter, 1997. "Keeping Organizational Secrets: Protective Institutional Mechanisms and Their Costs," Industrial and Corporate Change, Oxford University Press, vol. 6(3), pages 623-663, September.
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    3. Baughn, C. Christopher & Denekamp, Johannes G. & Stevens, John H. & Osborn, Richard N., 1997. "Protecting intellectual capital in international alliances," Journal of World Business, Elsevier, vol. 32(2), pages 103-117, July.
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    5. van Dijk, Machiel, 2000. "Technological Regimes and Industrial Dynamics: The Evidence from Dutch Manufacturing," Industrial and Corporate Change, Oxford University Press, vol. 9(2), pages 173-194, June.
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