Resource title

The Importance of Sectoral Differences in the Application of (Complementary) HRM Practices for Innovation Performance

Resource image

image for OpenScout resource :: The Importance of Sectoral Differences in the Application of (Complementary) HRM Practices for Innovation Performance

Resource description

Recent theoretical and empirical analysis in the field of economic organisation hasfocussed almost exclusively on identifying organisational practices and complementaritiesbetween such practices, invariant to the type of activity in question. However, this paper takes itspoint of departure in the observation from organisational theory that more knowledge-intensiveproduction activities often involve higher degrees of strategic uncertainty for firms andperformance ambiguity in relation to individual employees. Therefore, the “organic” or “clan”form of organisation — involving the application of “new” HRM practices — is expected toyield a higher outcome in terms of performance within knowledge-intensive sectors of theeconomy, as compared to other sectors. Moreover, knowledge-intensive activities are likely torequire the utilisation of local knowledge to a higher degree than less knowledge-intensiveactivities. Given that the application of new HRM practices is one way of supporting such localknowledge, it should also for this reason be expected that the application of HRM practices aremore effective for knowledge-intensive production activities. A sample of 726 Danish firms withmore than 50 employees in manufacturing and private services is applied. The results show thatHRM practices are more effective in influencing innovation performance when applied together,rather than when applied alone. In other words, organisational complementarities obtain.Moreover, it is shown that the application of (complementary) HRM practices is more effectivein what is normally perceived to be more knowledge-intensive sectors as compared to lessknowledge-intensive sectors.

Resource author

Keld Laursen

Resource publisher

Resource publish date

Resource language

eng

Resource content type

application/pdf

Resource resource URL

http://hdl.handle.net/10398/7897

Resource license

Check the according license before adaptation. When adapting give credits to the original author.