Strategic Human Resource Practices and Product Innovation

Abstract

Using creativity theory as a heuristic device, I develop hypotheses on the relation between strategic human resource practices and a firm's capability to generate product innovations. My empirical tests in a sample of 988 Dutch firms indicate the importance of task autonomy, training and performance-based pay for generating incremental innovations. Regarding radical innovations, the results point to the importance of task autonomy and flexible working hours. The use of standby contracts is associated with significantly lower levels of innovativeness. We also find interaction effects between individual HR practices, between HR practices and firm size, and between HR practices and R&D intensity.