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Abstract
Purpose - This study aims to analyse the relationship between innovation and human resource management (HRM) from an empirical perspective, attempting to establish whether innovation determines the firm's HRM or conversely HRM influences the innovation level of the company
Design/methodology/approach - Literature is reviewed from both theoretical and empirical perspectives. On the basis of this review, some research hypotheses are formulated. Finally, these hypotheses are empirically tested on a sample of Spanish firms.
Findings - The results provide evidence for both hypotheses and offer more support for Schuler and Jackson's model than for Miles and Snow's model. In accordance with the previous literature, that in order to affect employee behaviour - and consequently promote company objectives - firms must develop a bundle of internally consistent HRM practices. However, what is still unresolved is which HRM practices should be included in that system.
Originality/value - Fills a gap in the literature, particularly in empirical research, with a focus on Spanish firms.
Key words Human resource management, Innovation, Spain
Paper type Research paper
Introduction
Today, firms are facing a competitive and continuously changing situation. In this context the performance, and even the survival, of firms depend more than ever on their ability to achieve a solid and competitive position and on their flexibility, adaptability and responsiveness. Therefore, it is hardly surprising that there is growing interest in innovation as a strategy that allows the firm to improve its flexibility, competitive position and performance (Nooteboom, 1999; Roberts, 1998; Tanner, 1998; Utterback, 1994; Van de Yen, 1986; Wolfe, 1994).
According to Damanpour and Gopalakrishnan (1998) innovation implies the adoption of an "idea or behaviour which is new for the organisation". Regardless of the kind of innovation the firm develops, it needs some conditions for its successful development. Among others, the literature highlights strategy, organisational design, management style and human resource management (HRM) as the determining factors in the firm's innovative behaviour.
With regard to strategy, the literature identifies those alternatives that are more related to innovation. At the corporate level: growth, unrelated diversification and turnaround. At the business unit level: the prospector and analyser. And, finally, at the plant level: innovation and flexibility (Congden and Schoroeder, 1996; Miles and Snow, 1978; Porter, 1983; Santas, 2000; Skinner, 1984).