Which organisational changes are most beneficial for firm innovation?

Jane Bourke, Frank Crowley


This paper identifies which types of organisational HRM changes are most beneficial for firm innovation by using a treatment effects analysis and a large dataset of firms from emerging economies. The paper finds that organisational changes have a positive disruptive effect on firm product innovation outcomes. However, there is an organisational change hierarchy - where some HRM practices are more important than others. HRM practices that involve engaging with external partners, via collaboration and outsourcing have the largest effect on product innovation outcomes.

Full Text:



Abrunhosa, A. and P. Moura E Sá (2008). Are TQM principles supporting innovation in the Portuguese footwear industry? Technovation 28:208-221.

Bank, E-W (2014). Business environment and enterprise performance survey. Enterprise Surveys (http://www.enterprisesurveys.org), The World Bank

Bourke, J. and F. Crowley (2015). The Role of HRM and ICT Complementarities in Firm Innovation: Evidence from Transition Economies. International Journal of Innovation Management 19.

Combs, J.; Y.M. Liu; A. Hall; and D. Ketchen (2006). How much do high-performance work practices matter? A meta-analysis of their effects on organizational performance. Personnel Psychology 59:501-528.

Crowley, F. and J. Bourke (2016). The Influence of Human Resource Management Systems on Innovation: Evidence from Irish Manufacturing and Service Firms. International Journal of Innovation Management 20.

Cuijpers, M.; H. Guenter; and K. Hussinger (2011). Costs and benefits of inter-departmental innovation collaboration. Research Policy 40:565-575.

Gibson, C.B. and J.L. Gibbs (2006). Unpacking the concept of virtuality: the effects of geographic dispersion, electronic dependence, dynamic structure, and national diversity on team innovation. Administrative Science Quarterly 51:451-495.

Gordon, N.R. and P. McCann (2005). Innovation, agglomeration, and regional development. Vol. 5, Issue 5, pp. 523-543, 2005. . Journal of Economic Geography 5:523-543.

Guest, D.E. (2011). Human resource management and performance: still searching for some answers. Human Resource Management Journal 21:3-13.

Hurmelinna-Laukkanen, P. and Gomes, J., (2012). HRM system strength–HRM harnessed for innovation, appropriability and firm performance.Economics and Business Letters, 1(4), pp.43-53.

He, Z.L. and P.K. Wong (2012). Reaching Out and Reaching Within: A Study of the Relationship between Innovation Collaboration and Innovation Performance. Industry and Innovation 19:539-561.

Hewitt-Dundas, N. (2004). The adoption of AMT and innovation strategy in small firms. International Journal of Innovation and Technology Management 1:17-36.

Laursen, K. and N.J. Foss (2003). New human resource management practices, complementarities and the impact on innovation performance. Cambridge Journal of economics 27:243-263.

Laursen, K.; V. Mahnke; and P. Vejrup-Hansen (2005). Do differences make a difference? The impact of human capital diversity, experience and compensation on firm performance in engineering. In Druid Working Paper Series 5

Love, J.H. and S. Roper (2001). Outsourcing in the innovation process: Locational and strategic determinants. Papers in Regional Science 80:317-336. 2004. The Organisation of Innovation: Collaboration, Cooperation and Multifunctional Groups in UK and German Manufacturing. Cambridge Journal of economics 28:379-395.

Love, J.H.; S. Roper; and J.R. Bryson (2011). Openness, knowledge, innovation and growth in UK business services. Research Policy 40:1438-1452.

Love, J.H.; S. Roper; and J. Du (2009). Innovation, Ownership and Profitability. Internation Journal of Industrial Organization.

Mansury, M.A. and J.H. Love (2008). Innovation, productivity and growth in US business services: a firm-level analysis. Technovation 28:52-62.

Romer, P.M. (1990). Endogenous Technological Change. Journal of

Political Economy 98:S71-S102.

Roper, S.; N. Hewitt-Dundas; and J.H. Love (2004). An Ex Ante Evaluation Framework for the Regional Benefits of Publicly Supported R&D Projects. Research Policy 33:487-509.

Santos-Vijande, M.L. and L.I. Álvarez-González (2007). Innovativeness and organizational innovation in total quality oriented firms: The moderating role of market turbulence. Technovation 27:514-532.

Tether, B.; A. Mina; D. Consoli; and D. Gagliardi (2005). A Literature Review on Skills and Innovation. How Does Successful Innovation Impact on the Demand for Skills and How Do Skills Driven Innovation? . In University of Manchester: ESRC Centre on Innovation and Competition,.

Todnem By, R. (2005). Organisational change management: A critical review. Journal of Change Management 5:369-380.

Toner, P. (2011). Workforce skills and innovation - an overview of major themes in the literature. In STI Working Paper ed. T.a.I.S. OECD Directorate for Science. Paris: OECD.

DOI: https://doi.org/10.17811/ebl.5.4.2016.152-158


  • There are currently no refbacks.

ISSN: 2254-4380