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The Role Of Hrm And Ict Complementarities In Firm Innovation: Evidence From Transition Economies

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  • JANE BOURKE

    (School of Economics, University College Cork, Ireland)

  • FRANK CROWLEY

    (School of Economics, University College Cork, Ireland)

Abstract

Innovation is of critical importance for business productivity and economic growth. Firm characteristics and economic geography have been identified as influential drivers of innovation output. More recently, scholars have investigated the influence of Human Resource Management (HRM) practices and Information and Communication Technologies (ICTs) on firm performance. There is evidence that productivity gains from adapting HRM practices are higher if supported by investments in ICT. Therefore, we hypothesise that ICT-use and HRM practices are complementary inputs with respect to firm innovation. Our data source is the Management, Organisation, and Innovation (MOI) Survey which assesses management practices in manufacturing establishments in transition economies. We find that firms that employ HRM practices are more likely to innovate relative to firms that do not use HRM practices. Our analysis also reveals a complementary relationship between ICT-use and HRM practices which positively influences firm innovation performance.

Suggested Citation

  • Jane Bourke & Frank Crowley, 2015. "The Role Of Hrm And Ict Complementarities In Firm Innovation: Evidence From Transition Economies," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 19(05), pages 1-25.
    • Handle: RePEc:wsi:ijimxx:v:19:y:2015:i:05:n:s1363919615500541
    DOI: 10.1142/S1363919615500541
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    References listed on IDEAS

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    1. Marian Murphy, 2002. "Organisational Change and Firm Performance," OECD Science, Technology and Industry Working Papers 2002/14, OECD Publishing.
    2. Jan Fagerberg, 2003. "Innovation: A Guide to the Literature," Working Papers on Innovation Studies 20031012, Centre for Technology, Innovation and Culture, University of Oslo.
    3. Murat Şeker, 2012. "Importing, Exporting, and Innovation in Developing Countries," Review of International Economics, Wiley Blackwell, vol. 20(2), pages 299-314, May.
    4. Philip McCann & Jaakko Simonen, 2005. "Innovation, knowledge spillovers and local labour markets," Papers in Regional Science, Wiley Blackwell, vol. 84(3), pages 465-485, August.
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    Cited by:

    1. Luis Enrique Valdez-Juárez & Domingo García-Pérez-de-Lema & Gonzalo Maldonado-Guzmán, 2018. "ICT and KM, Drivers of Innovation and Profitability in SMEs," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 1-34, March.
    2. Martin Falk & Eva Hagsten, 2021. "Innovation intensity and skills in firms across five European countries," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(3), pages 371-394, September.
    3. Pološki Vokić Nina & Kohont Andrej & Slavić Agneš, 2017. "Is there Something as an Ex-Yugoslavian HRM Model? – Sticking to the Socialist Heritage or Converging With Neoliberal Practices," Naše gospodarstvo/Our economy, Sciendo, vol. 63(4), pages 40-53, December.
    4. Frank Crowley & Jane Bourke, 2018. "The Influence Of The Manager On Firm Innovation In Emerging Economies," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-21, April.
    5. Jane Bourke & Frank Crowley, 2016. "Which organisational changes are most beneficial for firm innovation?," Economics and Business Letters, Oviedo University Press, vol. 5(4), pages 152-158.
    6. Frank Crowley & Jane Bourke, 2017. "The Influence Of Human Resource Management Systems On Innovation: Evidence From Irish Manufacturing And Service Firms," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(01), pages 1-28, January.
    7. Leonardo Pompa, 2021. "Exponential Atlases: A Metaphysical Approach to the Organizational Rapid Growth," International Journal of Business and Management, Canadian Center of Science and Education, vol. 14(4), pages 143-143, July.
    8. Di Fan & Long Zhao, 2023. "The role of business locations in international patenting," Journal of Economics, Springer, vol. 139(1), pages 43-69, June.
    9. Justin Doran & Geraldine Ryan & Jane Bourke & Frank Crowley, 2019. "In-House Or Outsourcing Skills: How Best To Manage For Innovation?," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(01), pages 1-25, February.

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