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Impact of strategy, HRM strength and HRM bundles on innovation performance and organizational performance

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  • Rita Campos e Cunha
  • Miguel Pina e Cunha

Abstract

This study uses structural equation modeling to test a model of the impact of human resource management bundles on perceived organizational performance and innovation performance, on a large sample of companies. Strategic management orientation and innovation as a strategic factor are proposed to influence the existence of two types of HR bundles, functional flexibility and performance management, as well as contributing to stronger HR systems. HRM Strength, which integrates the metafeatures of an HRM system and provides a common interpretation of organizational goals, has a strong positive impact on both innovation and organizational performances. Finally, while both the functional flexibility and performance management bundles have a positive impact on organizational performance, they do not seem to affect innovation performance.

Suggested Citation

  • Rita Campos e Cunha & Miguel Pina e Cunha, 2004. "Impact of strategy, HRM strength and HRM bundles on innovation performance and organizational performance," FEUNL Working Paper Series wp464, Universidade Nova de Lisboa, Faculdade de Economia.
  • Handle: RePEc:unl:unlfep:wp464
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    References listed on IDEAS

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    1. Andrew H. Van de Ven, 1986. "Central Problems in the Management of Innovation," Management Science, INFORMS, vol. 32(5), pages 590-607, May.
    2. Wiji Arulampalam & Alison L. Booth, 1998. "Training and Labour Market Flexibility: Is There a Trade-off?," British Journal of Industrial Relations, London School of Economics, vol. 36(4), pages 521-536, December.
    3. Van de Ven, Andrew R., 1986. "Central Problems in the Management of Innovation," Agricultural Research Policy Seminar 139708, University of Minnesota Extension.
    4. 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.
    5. Arshad M. Khan & V. Manopichetwattana, 1989. "Innovative and Noninnovative Small Firms: Types and Characteristics," Management Science, INFORMS, vol. 35(5), pages 597-606, May.
    6. Rita Campos e Cunha & Miguel Pina e Cunha & Antonio Morgado & Chris Brewster, 2002. "Market forces, strategic management, HRM practices and organizational performance, a model based in European sample," FEUNL Working Paper Series wp415, Universidade Nova de Lisboa, Faculdade de Economia.
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