Human resource policies and firm innovation: the moderating effects of economic and institutional context
Human resource policies and firm innovation: the moderating effects of economic and institutional context
This paper examines the effects of human resource (HR) policies on firm innovation. Specifically, I argue that firms who implement policies to stimulate job autonomy and performance-based pay will be more likely to innovate, as proxied by investments in R&D. In addition, I contend that the institutional (i.e., labour regulations) and competitive (i.e., pressure from imports) contexts in which a firm operates will affect the relationship between HR policies and innovation, albeit in different ways. These hypotheses are tested using a dataset of more than 900 firms across a heterogenous set of 12 countries, majority of which are emerging markets. I find strong empirical backing for the role of both job autonomy and performance-based pay policies in stimulating firm innovation, and partial support for the moderating effects of institutional and competitive contexts of this relationship.
Krammer, Sorin M.S.
24ce872e-5044-4846-bb35-88e12c74c854
4 February 2022
Krammer, Sorin M.S.
24ce872e-5044-4846-bb35-88e12c74c854
Krammer, Sorin M.S.
(2022)
Human resource policies and firm innovation: the moderating effects of economic and institutional context.
Technovation, 110, [102366].
(doi:10.1016/j.technovation.2021.102366).
Abstract
This paper examines the effects of human resource (HR) policies on firm innovation. Specifically, I argue that firms who implement policies to stimulate job autonomy and performance-based pay will be more likely to innovate, as proxied by investments in R&D. In addition, I contend that the institutional (i.e., labour regulations) and competitive (i.e., pressure from imports) contexts in which a firm operates will affect the relationship between HR policies and innovation, albeit in different ways. These hypotheses are tested using a dataset of more than 900 firms across a heterogenous set of 12 countries, majority of which are emerging markets. I find strong empirical backing for the role of both job autonomy and performance-based pay policies in stimulating firm innovation, and partial support for the moderating effects of institutional and competitive contexts of this relationship.
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Accepted/In Press date: 25 July 2021
e-pub ahead of print date: 2 August 2021
Published date: 4 February 2022
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Local EPrints ID: 497794
URI: http://eprints.soton.ac.uk/id/eprint/497794
ISSN: 0166-4972
PURE UUID: 288e75fb-ea8b-4dab-9c90-adca1b67c36c
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Date deposited: 31 Jan 2025 17:42
Last modified: 01 Feb 2025 03:19
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Author:
Sorin M.S. Krammer
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