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Human resource management and radical innovation: a fuzzy-set QCA of US multinationals in Germany, Switzerland, and the UK

Author

Listed:
  • Uschi Backes-Gellner

    (University of Zurich)

  • Marlies Kluike

    (University of Tuebingen)

  • Kerstin Pull

    (University of Tuebingen)

  • Martin R. Schneider

    (University of Paderborn)

  • Silvia Teuber

    (University of Zurich)

Abstract

This paper explores, based on the varieties-of-capitalism approach, configurations of key human resource management practices that explain radical innovation in subsidiaries. A fuzzy-set qualitative comparative analysis is conducted with data for 69 subsidiaries of US-based MNEs in Germany, Switzerland, and the UK. Contrary to the implications of the varieties-of-capitalism literature, combining numerical flexibility and employing a high share of academics does not necessarily achieve radical innovation. Various paths to radical innovation exist, and most of them involve functional flexibility. Overall, the findings emphasize the strategic discretion MNEs have, and accentuate that functional flexibility is a key HR practice to achieve radical innovation across differing varieties of capitalism countries.

Suggested Citation

  • Uschi Backes-Gellner & Marlies Kluike & Kerstin Pull & Martin R. Schneider & Silvia Teuber, 2016. "Human resource management and radical innovation: a fuzzy-set QCA of US multinationals in Germany, Switzerland, and the UK," Journal of Business Economics, Springer, vol. 86(7), pages 751-772, October.
    • Handle: RePEc:spr:jbecon:v:86:y:2016:i:7:d:10.1007_s11573-015-0803-3
    DOI: 10.1007/s11573-015-0803-3
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    More about this item

    Keywords

    Functional flexibility; Numerical flexibility; Radical innovation; Radical change; Varieties of capitalism; Qualitative comparative analysis;
    All these keywords.

    JEL classification:

    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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