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Understanding the HRM systems double contribution to radical and incremental innovation in SMEs: A configurational approach

Author

Listed:
  • Curado Carla

    (ADVANCE/CSG, Instituto Superior de Economia e Gestão, Universidade de Lisboa, Portugal)

  • Gonçalves Tiago

    (ADVANCE/CSG Instituto Superior de Economia e Gestão, Universidade de Lisboa, Portugal)

  • Brito João Costa

    (Insituto Superior de Economia e Gestão, Universidade de Lisboa, Portugal)

Abstract

Aim/purpose – In this paper, we explore the contribution of Human Resource Management Systems (HRMS) to innovation in SMEs. We consider two HRMS with different orientations: Commitment HRMS (focusing on long-term career development to increase employees’ creativity) and Collaboration HRMS (focusing on the use of external human capital to achieve innovation). We believe that SMEs’ radical and incremental innovation follow different paths from a configurational perspective. We want to understand how the two HRMS influence radical and incremental innovation, consequently, we explore the contributions of Commitment HRMS and Collaboration HRMS. Design/methodology/approach – We apply a set-theoretic method, an analytic quantitative and qualitative technique to approach data – fuzzy-set Qualitative Comparative Analysis (fsQCA) – to test our models. We use a sample of 377 Portuguese SMEs from across industries. Findings – Results show there are two pathways that lead SMEs to high levels of incremental innovation and three alternative paths that originate high levels of radical innovation. By contrast, there are ways that lead to lower levels of incremental (two options) and radical innovation (three options). Research implications/limitations – We provide propositions for theory development on the contribution of HRMS to innovation. Managerial contributions regard the several options provided to SME managers in search of innovation. Limitations regard the lack of generalization power of results due to the cross-sectional nature of the work. However, the research design is replicable without restrictions. Originality/value/contribution – We suggest that SMEs’ radical and incremental innovation follow different paths from a configurational perspective. With this study, we contribute to showing the diversity of ways to reach higher innovation levels at SMEs, so that managers know the alternatives they have at their disposal. Additionally, we reveal the ways that lead to lower innovation levels at SMEs, so we alert managers to the undesired pathways they should be cautious about.

Suggested Citation

  • Curado Carla & Gonçalves Tiago & Brito João Costa, 2022. "Understanding the HRM systems double contribution to radical and incremental innovation in SMEs: A configurational approach," Journal of Economics and Management, Sciendo, vol. 44(1), pages 315-343, January.
    • Handle: RePEc:vrs:jecman:v:44:y:2022:i:1:p:315-343:n:14
    DOI: 10.22367/jem.2022.44.13
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    References listed on IDEAS

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    1. Daniel Prajogo & Christopher M. Mcdermott, 2014. "Antecedents of Service Innovation in SMEs: Comparing the Effects of External and Internal Factors," Journal of Small Business Management, Taylor & Francis Journals, vol. 52(3), pages 521-540, July.
    2. Tino Woschke & Heiko Haase & Jan Kratzer, 2017. "Resource scarcity in SMEs: effects on incremental and radical innovations," Management Research Review, Emerald Group Publishing Limited, vol. 40(2), pages 195-217, February.
    3. Tino Woschke & Heiko Haase & Jan Kratzer, 2017. "Resource scarcity in SMEs: effects on incremental and radical innovations," Management Research Review, Emerald Group Publishing Limited, vol. 40(2), pages 195-217, February.
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    More about this item

    Keywords

    Human Resources Management Systems; incremental innovation; radical innovation; SME; fsQCA;
    All these keywords.

    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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