Forming a firm innovation strategy through commitment-based human resource management

In this paper, we argue that commitment-based human resource management (CHRM) enables firms to form an innovation strategy, enriching the literature focused on the subordinate role of HRM in a given strategy. In CHRM, employees are hired based on their knowledge, their expertise is developed, and they are empowered to take reasonable risks in the interest of long-term outcomes. These HRM policies, which mediated by innovative work practices, enable firms to realize their strategic intention to engage in innovation. Analyses of time-lagged data from 445 firms support our hypotheses, and implications are discussed.     

Radical HRM innovation and competitive advantage: The Moneyball story

Moneyball (Lewis, 2003), a New York Times bestseller, is a book about baseball. When read through a broader lens, however, Moneyball is also a book about innovation, resistance to change, competitive advantage, achieving excellence, and, of most relevance here, human resource management. While many would agree that the radical innovation described in Moneyball represents a “new vision of management” in baseball, this article describes how Moneyball lessons might contribute to a “new vision of HRM” in various types of organizations. The focus of the article is on what HR executives and scholars can learn from the Moneyball phenomenon. More specifically, the authors address a number questions related to the Moneyball story that have relevance to successfully implementing HRM innovations; these questions have to do with overcoming resistance to the implementation of radical innovation and how HRM innovation can contribute to sustainable competitive advantage. © 2006 Wiley Periodicals, Inc.     

Human resource management and innovation in the Canary Islands: an ultra-peripheral region of the European Union

This study attempts to answer the question about how firms in an ultra-peripheral region innovate to compete in a global market when they often seem not to have the basic conditions to innovate identified in the literature. On that line, and based on the notion that firms in ultra-peripheral regions must recognise the value of their human capital in order to overcome the limitations typical of their social and geographical context, this research aimed to analyse the relationship between the human resource (HR) policy and innovation in an ultra-peripheral region of the European Union, namely the Canary Islands. The objective of this study is to identify the HR-related internal factors that can affect the innovation capability of firms. In particular, this paper considers the HR management policy, the formalisation of that policy in an HR plan, and job stability. To achieve this goal, an empirical study of 157 Canarian firms was carried out and arrived at the conclusion that high commitment human resource management (HRM) has a positive influence on organisational innovation in processes. The results also show that the formalisation of the HR policy in a plan, and job stability also increases innovation in processes.     

Uncovering competitive and institutional drivers of HRM practices in multinational corporations

Current international human resource management (IHRM) literature focusing on multinational corporations (MNCs) presents evidence of both similarities and differences in the HR practices adopted in different global locations. However, the drivers behind this duality require more detailed investigation. This article focuses on exploring why MNCs position themselves within global markets as they do, exploring how extant theory can help explain the drivers behind both global and national HR practices. Based on a worldwide sample of in‐depth interview‐based case studies of well‐known MNCs, we explore the ways in which different firms react to both institutional and competitive pressures in selecting their approach to HRM. The findings uncover a differentiation between external global competitive isomorphic pressures, external national institutional isomorphic pressures, and internal processes of strategic choice and competitive differentiation. It is suggested that MNCs face all three drivers of HRM simultaneously, leading to different patterns of practice adoption, adaptation and innovation.     

HRM practices for human and social capital development: effects on innovation capabilities

This paper analyzes the effect of systems of human resource management (HRM) practices on a company's innovation capabilities. To date, few studies have analyzed the way a firm may be more innovative by using specific sets of high-performance HRM practices from an intellectual capital-based view of the firm. From an extensive literature review, a model was established and tested through structural equation modelling, using the statistical technique of partial least squares. The study was applied to a sample of technological firms in Spain and the results show that high-profile personal HRM practices positively influence human capital while collaborative HRM practices influence social capital, which, in turn, affect innovation capabilities by means of, respectively, total and partial mediating effects. Managerial and HRM implications of these results are drawn by the authors, highlighting the idea of paying increased attention to managing firms with a focus on strategic intangible assets in order to gain competitive advantages based on innovation.     

Knowledge-oriented human resource configurations,the new product development learning process,and perceived new product performance

We propose a set of organizational efforts that can help companies accumulate and learn knowledge related to new product development (NPD) activities. We call it the NPD learning process and argue that a set of coherent human resource management (HRM) practices, termed knowledge-oriented human resource (HR) configuration, can facilitate the NPD learning process. Collecting survey data from Taiwan, we find that the knowledge-oriented HR configuration is positively related to the NPD learning process and that the NPD learning process is positively related to managers' perceived new product performance. This study contributes to the literature of strategic HRM and innovation management.     

The interactions between person–organization fit and leadership styles in Asian firms,an empirical testing

This paper presents a study that examines the use of human resource management (HRM) practices and factors influencing the adoption of HRM practices in small and medium-sized enterprises (SMEs). Using a multiple-case study method, HRM in SMEs was explored by comparing 12 small and medium-sized and 12 large semiconductor design firms. The findings show that there is considerable homogeneity across the firms in relation to their use of human resources (HR) practices providing support for the insights based on the new institutionalism. The factors leading to the homogeneity HRM are discussed. It is argued that theory-based empirical research on HRM in SMEs within the same industry enable us move towards a systematic understanding and explanation of HRM in SMEs.     

How and when matter: Exploring the interaction effects of high‐performance work systems,employee participation,and human capital on organizational innovation

Existing research on the relationship between high‐performance work systems (HPWS) and organizational innovation has paid insufficient attention to the boundary effects of employee participation and human capital. Bridging the human resource management (HRM) and employment relations literature, this study contributes to the contingency view of HRM and China‐specific research by investigating how human capital and employee participation, direct voice mechanism, and corporate governance participation jointly moderate the relationship between HPWS and organizational innovation. We test our three‐way interaction model using a sample of 108 firms and 1,250 employees in China. The results suggest that HPWS are positively associated with organizational innovation when employees with relatively less human capital are coupled with more direct voice mechanism or less corporate governance participation. In contrast, HPWS are negatively related to organizational innovation when employees possessing greater human capital are coupled with more direct voice mechanism. The theoretical and managerial implications and future research directions are discussed.     

Bridging knowledge in ambidextrous HRM systems: empirical evidence from hidden champions

Managing the tension between efficiency and flexibility is one of the core challenges that organizations must tackle in order to survive in the global competitive environment. Ambidexterity has been identified in the literature as a key way of managing this tension. Despite the enormous popularity of the concept of ambidexterity, the questions of how HR practices influence exploration and exploitation and support organizational ambidexterity remain underexplored. Drawing on our empirical case studies of three mid-sized ‘hidden champions’ in different high-tech manufacturing industries, we show how an ambidextrous human resource management (HRM) system works. We demonstrate that ambidextrous HRM systems can be regarded as a special type of high-performance work system (HPWS) that facilitates the continuous integration of exploration and exploitation in the pursuit of flexibility and efficiency. In particular, we elucidate how firms apply integrative employment practices and integrative work practices to facilitate collaboration and to create and strengthen a common frame of reference that fosters knowledge integration. Finally, setting up an ambidextrous HRM system supports the complementary interplay between a common frame of reference and a firm's ability to integrate knowledge in order to manage the conflicting demands of exploration and exploitation.     

Could HRM support organizational innovation?

Nowadays, it has become clear that the capacity of organizations to innovate and manage their human resources can be sources of competitive advantage. Recently, literature also asserts a positive relationship between human resource management and innovation. However, very little empirical research has specifically addressed those relationships. Using structural equations modelling with data collected from 173 Spanish firms, this study analyses them. Our findings show that innovation contributes positively to business performance and that human resource management enhances innovation. Implications for both academics and managers as well as future research lines are discussed.     

Human resource management innovations: Determinants of their adoption and implementation

The benefits of innovation to many organizational functions are well documented. Very little research has addressed innovation within the HRM function, however. Given the importance of the HRM function to organizational competitiveness, successful HRM innovations (HRMIs) can be important determinants of organizational success. The purpose of this paper is to contribute to understanding HRMIs, and thus, to assist managers in making more informed decisions regarding their adoption and implementation. In order to do so this article: (1) describes and defines HRMIs; (2) reviews three studies of HRMI implementation; (3) develops a model of HRMI implementation; and (4) discusses research and practical implications of the HRMI model. © 1995 by John Wiley & Sons, Inc.     

Environmental Innovations as a Source of Competitive Advantage or Vice Versa?

The aim of this paper is to examine the links between developed environmental innovations and the competitiveness of firms. It seeks answers to the question: Are the developed environmental innovations associated with the improved or impaired competitiveness of firms? In addition, it explores how competitive advantage is created along the innovation process. This will be done by comparing the successful and unsuccessful green innovators. The empirical evidence is based on the longitudinal dataset gathered from 128 Finnish firms which have developed one or more environmental innovations. The data covers nine years from 2002 to 2010. This study provides two contributions to academic literature. First, it deepens the existing knowledge of how environmental innovations are associated with competitive advantage. It identifies the types of competitive advantages as well as potential disadvantages along the innovation process. Second, this study demonstrates how the competitive advantage was enhanced along the successful innovation process. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment     

How Japanese manufacturing firms align their human resource policies with business strategies: testing a contingency performance prediction in a Japanese context

This study examines the interaction effects of business-level strategy and HRM policies upon performance among Japanese manufacturers, in response to the current debate around the contingency fit proposition in the field of strategic human resource management (SHRM). Specifically, it was hypothesized that the three generic strategic types (cost reduction, differentiation (innovation), and quality enhancement) would moderate the relationship between particular HRM policies and the performance of Japanese manufacturing firms. The results, based on a sample of 312 Japanese manufacturers operating in the domestic environment, reveal the existence of links between appropriate strategy and HRM policies in predicting performance, providing strong support for the proposition of contingency fit from SHRM theory. The findings are used to discuss how Japanese manufacturers can align their HRM policies with business strategies to increase manufacturing performance. Limitations of the study and directions for future research are also considered.     

Inclusive human resource management in freelancers' employment relationships: The role of organizational needs and freelancers' psychological contracts

This study aimed to advance our understanding of inclusive human resource management (HRM) in freelance employment. We examined organizational needs and freelancers' psychological contracts with a qualitative interview study among eight dyads of HR managers and freelancers. Although the findings showed that organisations and freelancers have different interests, both parties agreed on what inclusive HRM entails in freelancers' employment relationships. However, within the dyads, the content of the psychological contract was not always viewed the same by HR managers and freelancers. Hence, negotiating mutual expectations when implementing inclusive HRM to avoid psychological contract breach appeared important. Furthermore, organizational needs did not seem to be considered when designing inclusive HRM. Due to this lack of strategic fit, organisations may waste opportunities of tapping into the full potential of hiring freelancers. The findings provide organisations insight in considering freelancers as potential sources of competitive advantage.     

Strategic human resource management,human capital and competitive advantage: is the field going in circles?

The resource‐based view (RBV) of the firm has been consistently used as a backdrop in strategic human resource management (SHRM) research and has the potential to bridge the ‘micro–macro’ divide. The tension between the SHRM and the strategic human capital literature, however, signifies that RBV has not reached its potential. In this paper, we begin with a brief review of the conceptual logic linking human resource management (HRM) practices and firm outcomes that aim at highlighting the different treatment of RBV in the SHRM and strategic human capital literatures. We then propose a conceptual model that suggests that HRM practices are not simple levers that enable firms to create sustainable competitive advantage, as most of the strategic human capital research postulates. On the contrary, we argue that HRM practices can contribute to a firm's sustainable competitive advantage not only by enhancing employees' ability, and offering motivation and opportunities, but also by shaping supply‐side and demand‐side mobility constraints.     

Human Resource Strategy and Competitive Advantage: A Longitudinal Study of Engineering Consultancies

Concepts associated with the resource-based view of the firm are increasingly finding their way into the strategic HRM debate. Drawing on this literature, this paper reports one of the first industry-based, longitudinal investigations into the relationship between human resource strategy and competitive advantage. Set in New Zealand, but in an internationally oriented sector, the study examines one of the more neglected spheres of professional services: engineering consultancies. The results indicate that the consultancy firms that survived the major business traumas of the late 1980s and early 1990s adopted similar structural, competitive, operational and HR responses associated with their evolving 'industry recipe'. In interpreting the relationship between HRM and firm performance, then, it is important to distinguish those features of a firm's HRM which are strategic to ongoing viability from those that might form the basis of a relatively enduring form of competitive advantage. While there is insufficient evidence to conclude that any of the primary subjects in this study have established an enviable form of superiority, the study suggests that opportunities do exist for professional service firms to develop industry leadership through superior HRM. The analysis has implications for the wider work of theory-building in strategic HRM.     

Thriving in the New Normal: The HR Microfoundations of Capabilities for Business Model Innovation. An Integrated Literature Review

Firms need to respond to the increasing competition and change of the current New Normal environment by being more innovative, and especially in developing new business models. This paper seeks to explore how microfoundations, particularly with respect to human resource management, play a key role in facilitating innovation in business models through the development of key needed capabilities. Four themes are identified with respect to business model innovation (BMI) in the New Normal: BMI as an enabler to create and operate across industries and product-markets; BMI as a mechanism for firms to better navigate changing institutional landscapes; BMI as giving rise to business model portfolios; and concurrent and cumulative innovations that can lead to BMI. This paper also develops a conceptual framework that presents a synoptic view of the five essential capabilities for BMI, which include analogical reasoning, sensemaking, dynamic capabilities, organisational ambidexterity, and organisational learning. Finally, it is shown how the microfoundations of a bespoke, development-oriented BMI HR architecture can support the advancement of these capabilities and thus contribute to the strategic HR literature.     

Strategic alliances,organizational learning,and competitive advantage: The HRM agenda

In the context of strategic alliances that involve competitive collaboration, the competitive advantage of a firm can be protected only through its capability to accumulate invisible assets by a carefully planned and executed process of organizational learning. As this process is embedded in people, many of the necessary capabilities are closely linked to HRM strategies and practice. The article advocates that the transformation of the HR system to support the process of organizational learning is the key strategic task facing the HR function in firms engaged in international cooperative ventures.     

Managing knowledge through human resource practices: empirical examination on the Spanish automotive industry

This paper considers the relationship between human resource management (HRM) and knowledge management (KM). Specifically, it examines how the human resource (HR) practices that are expected to impact on employees’ abilities, motivation, and opportunity to engage in KM, do so by enabling knowledge sharing, knowledge maintaining, and knowledge creation within organizations. HRM expected to impact employees’ abilities include training and development practices. HRM expected to impact on employees’ motivation include rewards and appraisal practices. HRM expected to impact on employees’ opportunities including providing the support of trusting collaborative relationships. Therefore, HR practices impacting employees’ abilities, motivation, and opportunities are expected to be positively related to knowledge sharing and maintaining within organizations. HR practices impacting employees’ abilities, motivation, and opportunity are expected to be positively related to knowledge creation through their effect on knowledge sharing within organizations. Our research methodology uses a questionnaire survey approach to collect data from firms belonging to the Spanish automotive industry. Results from a final sample of 64 Spanish automotive firms show that HR practices aimed at motivating and giving employees the opportunity to behave as expected significantly affect knowledge sharing and maintaining. Further, knowledge sharing and maintaining is shown to mediate the relationship between HR practices and knowledge creation. The paper ends with a conclusion, limitations and implications for future research.     

Options‐based HRM,intellectual capital,and exploratory and exploitative learning in law firms' practice groups

The current study intends to uncover the strategic contribution of human resource management by introducing a unique construct of options‐based (vis‐à‐vis project‐based) HRM and examining its links to intellectual capital and exploratory and exploitative learning in the context of law firms' practice groups. Empirical results show that options‐based HRM is positively related to the practice group's explorative and exploitative learning. The intellectual capital mediates the relationships between options‐based HRM and the practice group's learning for exploration and exploitation. This study makes a valuable contribution to the HRM literature by establishing the mechanisms by which HRM enables organizational learning and extending the scope of HRM research to professional service firms. Our findings also provide valuable implications for the literature of organizational learning. © 2012 Wiley Periodicals, Inc.