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HRM practices and innovation performance: a panel-data approach

Author

Listed:
  • Mirta Diaz-Fernandez
  • Mar Bornay-Barrachina
  • Alvaro Lopez-Cabrales

Abstract

Purpose - The purpose of this paper is to study the relationship between human resource management (HRM) practices and innovation performance in Spanish manufacturing firms. The paper focuses on the number of existing patents, analyzing the extent to which this variable is favored by HRM practices. It will also assess the extent to which patents explain the firm performance and mediate in the relationship between the latter and HRM practices. Design/methodology/approach - The objective is to assess these relationships using the Spanish Survey of Industrial Strategic Behavior. The longitudinal analysis focuses on the years between 2001 and 2008, a period of great economic growth in Spain. Findings - The findings show that the most innovative firms were also the most competitive ones. Furthermore, employment security positively affects innovations over time and training on new technologies is associated with the number of patents, when overall compensation practices are high. Practical implications - This study demonstrated the existence of two objectives that HR managers should be aiming at. On the one hand, the development of patents should be a priority for obtaining better results over time. On the other hand, management should invest in HRM practices because they favor innovation and are neither a waste of time nor resources. Originality/value - This study contributes to the literature, surpassing the limitations of previous research, by assessing the role of HRM practices in innovation and company outcomes and by using a longitudinal study design.

Suggested Citation

  • Mirta Diaz-Fernandez & Mar Bornay-Barrachina & Alvaro Lopez-Cabrales, 2017. "HRM practices and innovation performance: a panel-data approach," International Journal of Manpower, Emerald Group Publishing Limited, vol. 38(3), pages 354-372, June.
    • Handle: RePEc:eme:ijmpps:ijm-02-2015-0028
    DOI: 10.1108/IJM-02-2015-0028
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    Citations

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    Cited by:

    1. Arshinder Singh Chawla & Neha Gahlawat & Sandeep Kumar & Subhash C. Kundu & Homesh Kundu, 2023. "Strategic HRM and Firm Performance: Mediating Role of Knowledge Management Capacity and Innovation Performance," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 48(1), pages 98-117, February.
    2. Tarifa Fernández, Jorge & Céspedes Lorente, José Joaquín & de Burgos Jiménez, Jerónimo, 2021. "Examining the moderating role of HIHRP in the relationship between external integration and productivity," MPRA Paper 120126, University Library of Munich, Germany, revised Mar 2021.
    3. Rong Li & Yi-Fei Du & Hong-Juan Tang & Francis Boadu & Min Xue, 2019. "MNEs’ Subsidiary HRM Practices and Firm Innovative Performance: A Tacit Knowledge Approach," Sustainability, MDPI, vol. 11(5), pages 1-18, March.
    4. Regina Lenart-Gansiniec & Barbara A. Sypniewska & Jin Chen, 2023. "Innovation-driven human resource management practices: A systematic review, integrative framework, and future research directions," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 19(2), pages 7-56.
    5. Helena Lenihan & Kevin Mulligan & Justin Doran & Christian Rammer & Olubunmi Ipinnaiye, 2024. "R&D grants and R&D tax credits to foreign-owned subsidiaries: Does supporting multinational enterprises’ R&D pay off in terms of firm performance improvements for the host economy?," The Journal of Technology Transfer, Springer, vol. 49(2), pages 740-781, April.

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