IDEAS home Printed from https://ideas.repec.org/a/eee/iburev/v13y2004i6p685-703.html
   My bibliography  Save this article

The HR system, organizational culture, and product innovation

Author

Listed:
  • Lau, Chung-Ming
  • Ngo, Hang-Yue

Abstract

This paper outlines the critical role of organizational culture in the link between the HR system and development of new products and services. While it has been generally accepted that an innovation-oriented HR system would lead to higher level of innovation, the literature does not lend full support to this link. This paper is to point out the inadequacy of such simplified view. It is suggested that a developmental culture is the missing link in-between HR system and innovation outcomes. An HR system which emphasizes extensive training, performance-based reward, and team development is necessary to create an organizational culture that is conducive to product innovation. The empirical findings from a survey of 332 firms in Hong Kong confirmed that organizational culture acted as a mediator between a firm's HR system and product innovation.

Suggested Citation

  • Lau, Chung-Ming & Ngo, Hang-Yue, 2004. "The HR system, organizational culture, and product innovation," International Business Review, Elsevier, vol. 13(6), pages 685-703, December.
    • Handle: RePEc:eee:iburev:v:13:y:2004:i:6:p:685-703
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969593104000794
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tsang, Eric W. K., 1999. "The knowledge transfer and learning aspects of international HRM: an empirical study of Singapore MNCs," International Business Review, Elsevier, vol. 8(5-6), pages 591-609, October.
    2. Lau, Chung-Ming & Ngo, Hang-Yue, 1996. "One country many cultures: Organizational cultures of firms of different country origins," International Business Review, Elsevier, vol. 5(5), pages 469-486, October.
    3. Chung-Ming Lau & Hang-Yue Ngo, 2001. "Organization Development and Firm Performance: A Comparison of Multinational and Local Firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(1), pages 95-114, March.
    4. Sparkes, John R. & Miyake, Maiko, 2000. "Knowledge transfer and human resource development practices: Japanese firms in Brazil and Mexico," International Business Review, Elsevier, vol. 9(5), pages 599-612, October.
    5. Dosoglu-Guner, Berrin, 2001. "Can organizational behavior explain the export intention of firms? The effects of organizational culture and ownership type," International Business Review, Elsevier, vol. 10(1), pages 71-89, February.
    6. Sharon R. Peck, 1994. "Exploring The Link Between Organizational Strategy And The Employment Relationship: The Role Of Human Resources Policies," Journal of Management Studies, Wiley Blackwell, vol. 31(5), pages 715-736, September.
    7. Kim Hoque, 1999. "Human Resource Management and Performance in the UK Hotel Industry," British Journal of Industrial Relations, London School of Economics, vol. 37(3), pages 419-443, September.
    8. Chung-Ming Lau & David K Tse & Nan Zhou, 2002. "Institutional Forces and Organizational Culture in China: Effects on Change Schemas, Firm Commitment and Job Satisfaction," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(3), pages 533-550, September.
    9. David E. Guest & Jonathan Michie & Neil Conway & Maura Sheehan, 2003. "Human Resource Management and Corporate Performance in the UK," British Journal of Industrial Relations, London School of Economics, vol. 41(2), pages 291-314, June.
    10. Chacko, Thomas I. & Wacker, John G., 2001. "An examination of strategic goals and management practices of Russian enterprises," International Business Review, Elsevier, vol. 10(4), pages 475-490, August.
    11. Harris, Lloyd C. & Ogbonna, Emmanuel, 2001. "Strategic human resource management, market orientation, and organizational performance," Journal of Business Research, Elsevier, vol. 51(2), pages 157-166, February.
    12. Jangwoo Lee & Danny Miller, 1999. "People matter: commitment to employees, strategy and performance in Korean firms," Strategic Management Journal, Wiley Blackwell, vol. 20(6), pages 579-593, June.
    13. Bae, Johngseok & Rowley, Chris, 2001. "The impact of globalization on HRM: the case of South Korea," Journal of World Business, Elsevier, vol. 36(4), pages 402-428, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andreas Georgiadis & Christos N. Pitelis, 2010. "The Interrelationship between HR, Strategy and Profitability in Service SMEs: Empirical Evidence from the UK Tourism Hospitality and Leisure Sector," CEP Discussion Papers dp0972, Centre for Economic Performance, LSE.
    2. Pankaj C. Patel & Betty Conklin, 2012. "Perceived Labor Productivity in Small Firms—The Effects of High–Performance Work Systems and Group Culture through Employee Retention," Entrepreneurship Theory and Practice, , vol. 36(2), pages 205-235, March.
    3. Marsden, David & Cañibano, Almudena, 2009. "Participation in organisations: economic approaches," LSE Research Online Documents on Economics 25167, London School of Economics and Political Science, LSE Library.
    4. Nai‐Wen Chi & Carol Yeh‐Yun Lin, 2011. "Beyond the High‐Performance Paradigm: Exploring the Curvilinear Relationship between High‐Performance Work Systems and Organizational Performance in Taiwanese Manufacturing Firms," British Journal of Industrial Relations, London School of Economics, vol. 49(3), pages 486-514, September.
    5. Sergio Salis & Allan M. Williams, 2010. "Knowledge Sharing through Face‐to‐Face Communication and Labour Productivity: Evidence from British Workplaces," British Journal of Industrial Relations, London School of Economics, vol. 48(2), pages 436-459, June.
    6. Froese, Fabian Jintae & Pak, Yong Suhk & Chong, Li Choy, 2008. "Managing the human side of cross-border acquisitions in South Korea," Journal of World Business, Elsevier, vol. 43(1), pages 97-108, January.
    7. Justine Horgan & Peter Muehlau, 2005. "Human Resource Management and Performance: A Comparative Study of Ireland and the Netherlands," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 16(2), pages 242-258.
    8. Isidro Peña Pardo & João Duque, 2008. "The Relationship Between Human Resources Strategies And Business Outcomes: A Configurational Approach," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(2), pages 193-236.
    9. Yu, Ming-Miin & Chern, Ching-Chin & Hsiao, Bo, 2013. "Human resource rightsizing using centralized data envelopment analysis: Evidence from Taiwan's Airports," Omega, Elsevier, vol. 41(1), pages 119-130.
    10. Alex Bryson & Stephen J Wood, 2008. "The Rise of High Involvement Management in Britain," National Institute of Economic and Social Research (NIESR) Discussion Papers 321, National Institute of Economic and Social Research.
    11. repec:ehu:rdadme:9750 is not listed on IDEAS
    12. Zhi Chen & Shenglan Huang & Chong Liu & Min Min & Liying Zhou, 2018. "Fit between Organizational Culture and Innovation Strategy: Implications for Innovation Performance," Sustainability, MDPI, vol. 10(10), pages 1-18, September.
    13. Angela Knox, 2014. "Human resource management (HRM) in temporary work agencies: Evidence from the hospitality industry," The Economic and Labour Relations Review, , vol. 25(1), pages 81-98, March.
    14. Hazril Izwar IBRAHIM & Khairul Anuar Mohammad SHAH, 2013. "Effects of Organizational Characteristics Factors on the Implementation of Strategic Human Resource Practices: Evidence from Malaysian Manufacturing Firms," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 16(1), pages 5-24, June.
    15. Eleni T. Stavrou & Chris Brewster, 2005. "The Configurational Approach to Linking Strategic Human Resource Management Bundles with Business Performance: Myth or Reality?," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 16(2), pages 186-201.
    16. Serafini, Giovanni O. & Szamosi, Leslie T., 2015. "Five star hotels of a Multinational Enterprise in countries of the transitional periphery: A case study in human resources management," International Business Review, Elsevier, vol. 24(6), pages 972-983.
    17. Subash Chandra Pattnaik & Rashmita Sahoo, 2020. "Human Resource Practices as Predictors of Organizational Performance: A Structural Equation Modeling Approach," Global Business Review, International Management Institute, vol. 21(4), pages 1087-1112, August.
    18. Surhan Cam & Serap Palaz, 2023. "Mutual interests management with a purposive approach: Evidence from the Turkish shipyards for an amorphous impact model between (subjective) well‐being and performance," Industrial Relations Journal, Wiley Blackwell, vol. 54(1), pages 40-70, January.
    19. Kaifeng Jiang & Riki Takeuchi & David P. Lepak, 2013. "Where do We Go From Here? New Perspectives on the Black Box in Strategic Human Resource Management Research," Journal of Management Studies, Wiley Blackwell, vol. 50(8), pages 1448-1480, December.
    20. Tieng Kimseng & Amna Javed & Chawalit Jeenanunta & Youji Kohda, 2020. "Sustaining Innovation through Joining Global Supply Chain Networks: The Case of Manufacturing Firms in Thailand," Sustainability, MDPI, vol. 12(13), pages 1-17, June.
    21. Igbokwe-Ibeto, C.J, 2019. "The Effect of Job Analysis on Service Delivery in Federal Airports Authority of Nigeria (FAAN) 2005-2014," International Journal of Human Resource Studies, Macrothink Institute, vol. 9(2), pages 195-211, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:13:y:2004:i:6:p:685-703. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.