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The Influence Of Human Resource Management Systems On Innovation: Evidence From Irish Manufacturing And Service Firms

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  • FRANK CROWLEY

    (School of Economics, University College Cork, Ireland)

  • JANE BOURKE

    (School of Economics, University College Cork, Ireland)

Abstract

The ability of firms to maximise their innovative potential is fundamental to economic growth. The successful implementation of human resource management (HRM) practices is important for firm performance, and there is a growing understanding of the benefits to firms when HRM practices are applied together. We investigate if HRM practices are significantly more effective when implemented as ‘bundles’ or ‘systems’ of complementarities than when they are implemented individually in Irish manufacturing and service firms. The National Workplace Survey (2009a), a dataset rich with information on HRM practices at the firm level, is employed. HRM bundles relating to performance management and appraisal, knowledge sharing and involvement and empowerment in decision-making are all positively associated with innovation in manufacturing and service firms, and bundles of flexible employment contracts practices positively influence innovation in service firms. In summary, HRM practices when applied together, rather than in isolation, are important for firm innovation.

Suggested Citation

  • Frank Crowley & Jane Bourke, 2017. "The Influence Of Human Resource Management Systems On Innovation: Evidence From Irish Manufacturing And Service Firms," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(01), pages 1-28, January.
    • Handle: RePEc:wsi:ijimxx:v:21:y:2017:i:01:n:s1363919617500037
    DOI: 10.1142/S1363919617500037
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    2. Frank Crowley & Jane Bourke, 2018. "The Influence Of The Manager On Firm Innovation In Emerging Economies," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-21, April.
    3. Jane Bourke & Frank Crowley, 2016. "Which organisational changes are most beneficial for firm innovation?," Economics and Business Letters, Oviedo University Press, vol. 5(4), pages 152-158.
    4. Chengde You & Huishan Qiu & Zhuojie Pi & Mengyuan Yu, 2023. "Sustainable Enterprise Development in the Manufacturing Sector: Flexible Employment and Innovation in China," Sustainability, MDPI, vol. 15(10), pages 1-30, May.
    5. Justin Doran & Geraldine Ryan & Jane Bourke & Frank Crowley, 2019. "In-House Or Outsourcing Skills: How Best To Manage For Innovation?," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(01), pages 1-25, February.
    6. Chia-Chien Hsu & Chiung-Shu Cheng & Ching-Torng Lin, 2017. "The Influence of Learning Orientation and Human Resource Practices on Firm Innovativeness and Innovations: An Application of the Push and Pull Framework," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 13(1), pages 27-51, February.

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