HUMAN RESOURCE POLICIES AND FIRM INNOVATION: THE MODERATING EFFECTS OF ECONOMIC AND INSTITUTIONAL CONTEXT

Krammer, Sorin (2021): HUMAN RESOURCE POLICIES AND FIRM INNOVATION: THE MODERATING EFFECTS OF ECONOMIC AND INSTITUTIONAL CONTEXT. Published in: Technovation (30 July 2021)

Abstract

This paper examines the effects of human resource (HR) policies on firm innovation. Specifically, we 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, we 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. We test these hypotheses using a dataset of more than 900 firms across a heterogenous set of 12 countries, majority of which are emerging markets. We 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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Human Resource Management; Job autonomy; Performance-based pay; Firm innovation; Labour regulations; Import competition
• Subjects: D - Microeconomics > D4 - Market Structure, Pricing, and Design; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J33 - Compensation Packages ; Payment Methods; J - Labor and Demographic Economics > J8 - Labor Standards: National and International; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O17 - Formal and Informal Sectors ; Shadow Economy ; Institutional Arrangements; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O32 - Management of Technological Innovation and R&D

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