Innovation and firm performance: the role of human resource management practices

Author(s):  
Mirta Diaz-Fernandez ◽  
Mar Bornay-Barrachina ◽  
Alvaro Lopez-Cabrales

Purpose – The purpose of this paper is to study the relationship between human resource (HR) practices and innovative performance in the Spanish industry. Specifically, the authors will focus on innovativeness, analysing the extent to which this capability is favoured by some human resource management (HRM) practices as investments on training and whether it is also affected by the use of full time and/or temporary workers. Design/methodology/approach – The authors propose the assessment of these relationships by means of the Spanish Survey of Industrial Strategic Behaviour. The authors focus the longitudinal analysis on the period 2001-2008, years of the highest economic growth in Spain during the last decades. Findings – The findings show that the most innovative firms are also the most competitive ones in terms of added value. Moreover, while a significant and positive relationship between the use of full-time workers and innovativeness is demonstrated, the role of temporary workers employees remains unclear. Finally, and surprisingly, training investments on new technologies, languages and data processes do not have any impact on innovativeness. The paper is closed with a discussion about some lessons the authors may learn from these wealthy years and the role played by HRM investments on firms. Practical implications – This study demonstrates the existence of two objectives that managers should seek to achieve. On one side, they should focus on innovation as a way of increasing firm performance. And, on the other side, managers should invest on specific training, in order to develop more innovative and profitable organizations. Originality/value – This paper proposes and tests a model where innovation mediates the relationships between HRM practices and performance. Such mediation would be a contribution to the strategic HRM field as very recent research call for the study of new mediators. Also, this paper employs panel data (2001-2008) for assessing these relationships. This is worthy because it is coherent with the idea of internal development of capabilities, instead of cross-sectional analyses and because the authors may infer causality with the study design, as it is demanded by researchers.

2019 ◽  
Vol 3 (1) ◽  
pp. 50-69 ◽  
Author(s):  
Malam Salihu Sabiu ◽  
Kabiru Jinjiri Ringim ◽  
Tang Swee Mei ◽  
Mohd Hasanur Raihan Joarder

PurposeThe purpose of this paper is to investigate the influence of human resource management (HRM) practices, (recruitment and selection) and organizational performance (OP) through mediation role of ethical climates (ECs) in Nigerian educational agencies.Design/methodology/approachQuantitative data were collected from 181 educational agencies represented by director of administration; SmartPLS-SEM was used in testing the relationship, as well as testing the mediating effect of ECs.FindingsThe results revealed strong support for the mediating role of ECs on the relationship between HRM practice (recruitment and selection) and OP.Research limitations/implicationsPolicy makers and executives in educational agencies need to consider making appropriate decision in terms of effectively adopt and implement performance-based HRM practices that can encourage and create ethical behavior of employees’ and within organization. Through the adoption and utilization of these practices, educational agencies can enhance OP.Practical implicationsThis study contributes to the understanding of the relationship between HRM and OP by clarifying a pathway between these variables. This study also generalizes consistent findings on the HRM practices and OP relationship to a different discipline and context, i.e. educational agencies.Originality/valueThis study adds to the domain of resource-based view by incorporating EC as a mediator between HRM practices and OP.


2019 ◽  
Vol 27 (3) ◽  
pp. 471-493 ◽  
Author(s):  
Neha Gahlawat ◽  
Subhash C. Kundu

Purpose This study aims to examine the adoption and efficacy level of progressive human resource management (HRM) practices in various organizations operating in India. Design/methodology/approach Primary data based on 615 respondents from 103 domestic firms and 116 foreign multinational corporations (MNCs) operating in India were gathered and analyzed using statistical techniques like t-test, confirmatory factor analysis and structural equation modeling. Findings The results reveal that the adoption of progressive HRM practices in form of self-managed teams, flexibility to work flexible hours, use of online mediums to invite applicants, selection of candidates using assessment center and integrity test, performance based incentives, flexible benefits, facility of e-learning and innovative management development programs is positively related to firm performance in Indian context. Using institutional and cultural perspective, the findings have also demonstrated that their exist differences in adoption of progressive HRM practices between foreign MNCs and domestic firms. Practical implications Domestic firms in India are needed to learn some important managerial lessons from the foreign MNCs, especially when their adoption of progressive practices results in more increase in firm performance. These are suggested to implement a broad range of innovative HR practices like MNCs to improve growth potential, instead of focusing on two or three practices. Originality/value By exploring the differences between domestic and foreign MNCs, this study has offered some key insights on the extent of adoption and operationalization of progressive HRM in current Indian business environment.


2018 ◽  
Vol 38 (7-8) ◽  
pp. 606-636 ◽  
Author(s):  
Alima Aktar ◽  
Faizuniah Pangil

Purpose The purpose of this paper is to examine the mediating role of organizational commitment (OC) on the relationship between human resource management (HRM) practices and employee engagement among banking employees in the context of an emerging economy namely Bangladesh. Design/methodology/approach The survey data include 383 employees from 30 private commercial banks in Bangladesh. For analyzing the data, structural equation modeling is employed with the bootstrapping method. Findings This study finds that HRM practices such as career advancement, employee participation, job security, performance feedback, rewards and recognition, training and development are the significant predictors of employee engagement. Results also identify OC as a partial mediator on HRM practices and employee engagement relationship which suggest that direct relationship of predictors and criterion variables are stronger than indirect association. More interestingly, findings indicate that the mechanism of black-box stage is not always work on the relationship between HRM practices and employee performance. Originality/value Exploring the role of OC on the relationship between HRM practices and employees’ behavioral outcome, i.e. employee engagement, is appeared as an initial effort in the academic literature. Furthermore, empirical research that examines the association of different organizational factors with employee engagement through OC is rarely been investigated. Thus, the findings of this study act as a strategic tool for the bank managers to design their organizational policies in such a way that fosters their employee’ level of engagement.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Surajit Bag ◽  
Pavitra Dhamija ◽  
Jan Harm Christiaan Pretorius ◽  
Abdul Hannan Chowdhury ◽  
Mihalis Giannakis

PurposeThe authors aim to investigate whether ability electronic human resource management (e-HRM) practices, opportunity enhancing e-HRM practices and motivation enhancing e-HRM can possibly lead to development of sustainable e-HRM systems. Finally, the authors also examined if sustainable e-HRM systems can enhance firm performance.Design/methodology/approachThe model was developed using dynamic capability view perspective. The study tests theoretical model and presents findings by analysing data (partial least squares structural equation modelling method) gathered from 151 South African firms.FindingsThe findings indicate that ability enhancing e-HRM practices and motivation enhancing e-HRM practices can result in development of sustainable e-HRM systems, and findings also indicate that sustainable e-HRM systems can improve firm performance.Practical implicationsEmphasis is required on ability enhancing e-HRM practices and motivation enhancing e-HRM practices to develop sustainable e-HRM systems. Once workforce understand the complete benefits of e-HRM, they will start using this system on a regular basis for activities including goal setting, and performance measurement. The development of sustainable e-HRM systems will improve firm performance especially from cost control and customer satisfaction perspective.Originality/valueThis study advances the conceptual debate in the e-HRM domain through the development and testing of theoretical model.


2019 ◽  
Vol 49 (8) ◽  
pp. 1519-1535 ◽  
Author(s):  
Ludivine Adla ◽  
Virginie Gallego-Roquelaure ◽  
Ludivine Calamel

Purpose The purpose of this paper is to discuss the relation between human resource management (HRM) and innovation in small to medium size enterprises (SMEs) through gift/counter-gift exchanges. Design/methodology/approach Using the theory of the gift/counter-gift, the authors study the case of a French SME, specifically, a technological innovation project developed from 2013 to 2016. The authors structure the data and create a model using the Gioia method. Findings The results reveal that the logic of giving evolves in three key stages: freeing up gifts, mobilizing gifts and rethinking gifts. Originality/value These stages highlight the importance of an enabling organizational environment, gift/counter-gift relationships and the role of a number of HRM practices.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Huiying Zhang ◽  
Man Yang ◽  
Baofeng Huo

PurposeIn the field of innovation, there is growing interest in exploring the factors that determine the extent to which firms can learn from external sources. However, most previous studies neglect the role of human factors. Little is known about which employee behaviors are desirable for boundary-spanning learning activities and which human resource management (HRM) practices are appropriate to respond to external knowledge transfer across boundaries. To fill this gap, the authors investigate the role of empowerment-focused HRM in interfirm learning and explore the integration of external inputs from the perspective of employees.Design/methodology/approachBased on empirical survey data collected from different countries, the authors test the proposed model with structural equation modeling.FindingsThe authors’ findings indicate that empowerment-focused HRM practices, including job enrichment, job autonomy, teamwork and cross-functional communication, are positively associated with relationship learning.Originality/valueIn this study, the authors present a theoretical explanation for how empowerment-focused HRM may influence firm's innovation through relationship learning process and provide empirical evidence regarding the specific HRM practices that can have different effects on the different phases of relationship learning.


2020 ◽  
Vol 42 (6) ◽  
pp. 1353-1380
Author(s):  
Frank Nana Kweku Otoo

PurposeThe aim of this paper is to examine the mediating role of employee competencies in the association between human resource management (HRM) practices and organizational effectiveness of the pharmaceutical industry in Ghana.Design/methodology/approachAn integrated research model was developed by combining principal factors from existing literature. The validity of the model was tested by applying structural equation modelling (SEM) to the data collected from 550 employees of the selected pharmaceutical industries. The reliability and validity of the dimensions are established through confirmatory factor analysis (CFA) and related hypotheses tested using SEM.FindingsThe results indicate that some HRM practices influence organizational effectiveness through their impact on employee competencies. The study further revealed that employee competencies mediate the association between HRM practices and organizational effectiveness.Research limitations/implicationsThe research was undertaken in the pharmaceutical industry and the analysis based on cross-sectional data which cannot be generalized across a broader range of sectors and international environment.Practical implicationsThe findings of the study have the potential to help stakeholders, policy makers and management of the pharmaceutical industry in espousing suitable and well-articulated HRM practices to influence and shape the skills, knowledge and behaviour of employees and inordinately enhance organizational effectiveness.Originality/valueThis study extends the literature by adducing evidence empirically that employee competencies mediated the association between HRM practices and organizational effectiveness of the pharmaceutical industry in Ghana.


Author(s):  
Baofeng Huo ◽  
Zhaojun Han ◽  
Haozhe Chen ◽  
Xiande Zhao

Purpose – Taking an interdisciplinary approach, the purpose of this paper is to combine concepts from human resource management (HRM) and supply chain management (SCM) fields and explore the effects of high-involvement HRM practices on supply chain integration (SCI). Design/methodology/approach – Using empirical survey data collected from ten countries, the authors examine the specific effects of three dimensions of high-involvement HRM practices – employee skills, incentives and participation – on three types of SCI – internal integration, supplier and customer integration. The authors use structural equation modeling and the maximum-likelihood estimation method to test the proposed relationships. Findings – The results confirm the overall relevancy of HRM to SCI. However, several proposed links are not supported by the data collected. Originality/value – This study makes both theoretical and managerial contributions by empirically examining the interface between HRM and SCI. More specifically, it examines the effects of different high-involvement HRM practices on different types of SCI. The findings will not only help researchers to better understand the interface, but will also guide managers in adjusting HRM practices to achieve desired operational goals.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Arosha S. Adikaram ◽  
N.P.G.S.I. Naotunna ◽  
H.P.R. Priyankara

PurposeThis paper aims to present an empirically driven crisis management framework of complementary human resource management (HRM) bundles that can be utilized in simultaneously managing the health crisis, financial crisis and disruptions to business operations through lockdown and other government restrictions propelled by the COVID-19 pandemic.Design/methodology/approachThe framework is developed employing qualitative methodology, drawing from the successful HRM practices adopted by 26 Sri Lankan companies in battling the many crises of COVID-19 and using the soft HRM approach as the theoretical basis.FindingsThe findings report a framework that consists of three key HRM bundles (health and safety bundle, cost-saving bundle and employee motivation and engagement bundle) entailing an array of inter-related, internally consistent, complementary and mutually reinforcing HRM practices and HRM activities. These HRM bundles and the HRM practices as well as the HRM activities therein, indicate how a softer approach to managing employees can be used during a crisis.Practical implicationsThe framework will inform the HRPs of the HRM bundles, HRM practices and HRM activities that can be used to manage the multiple crises created by COVID-19 and other similar pandemics.Originality/valueThe study contributes to and expands the knowledge of HRM in crisis management generally and HRM in a global pandemic more specifically.


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