There is growing evidence available to suggest that HR practice is an important predictor of organisational performance. In this article, we argue that HR practices also have the potential to promote organisational innovation. We describe a longitudinal study of 22 UK manufacturing companies and examine the relationship between such practices and product and technological innovation. Results reveal that training, induction, team working, appraisal and exploratory learning focus are all predictors of innovation. Contingent reward, applied in conjunction with an exploratory learning focus, is positively associated with innovation in technical systems. Furthermore, training, appraisal and induction, combined with exploratory learning focus, explain variation between companies in product and technological innovation above and beyond the main effects observed.

There is growing evidence available to suggest that Human Resource Management (HRM) practice is an important predictor of organizational performance. Drawing upon organizational learning perspectives, we argue that HRM systems also have the potential to promote organizational innovation. We present longitudinal data from thirty-five UK manufacturing organizations to suggest that effective HRM systems -incorporating sophisticated approaches to recruitment and selection, induction, appraisal and training -predict organizational innovation in products and production technology. We further show that organizational innovation is enhanced where there is a supportive learning climate, and inhibited (for innovation in production processes) where there is a link between appraisal and remuneration.

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Ten years ago, Bowen and Ostroff () criticized the one‐sided focus on the content‐based approach, where researchers take into account the inherent virtues (or vices) associated with the content of HR practices to explain performance. They explicitly highlight the role of the psychological processes through which employees attach meaning to HRM. In this first article of the special section entitled “Is the HRM Process Important?” we present an overview of past, current, and future challenges. For past challenges, we attempt to categorize the various research streams that originated from the seminal piece. To outline current challenges, we present the results of a content analysis of the original 15 articles put forward for the special section. In addition, we provide the overview of a caucus focused on this theme that was held at the Academy of Management annual meeting in Boston in 2012. In conclusion, we discuss future challenges relating to the HRM process approach and review the contributions that have been selected—against a competitive field—for this special issue. © 2014 Wiley Periodicals, Inc.

Studies on the effects of transformational leadership on employee innovative behaviour have yielded mixed results. The authors argue that one possible explanation for these mixed findings is that researchers have assumed a linear relationship between these constructs. In contrast, they suggest that the relationship between transformational leadership and innovative behaviour is non‐linear. Specifically, the authors argue that the positive effects of transformational leadership on innovative behaviour will be stronger at low and high levels of transformational leadership. Moreover, they examine whether the relationship between transformational leadership and innovative behaviour is mediated by knowledge sharing within and between teams. The authors undertake a constructive replication by testing these hypothesized relationships in two studies: (1) a multi‐actor team‐level study conducted in the USA, and (2) a longitudinal employee‐level study of teachers in the Netherlands. Results of both studies reveal that knowledge sharing mediates the relationship between transformational leadership and innovative behaviour, and that the indirect relationship is curvilinear. The authors link these findings to leader substitution theory, proposing that employees turn to their peers and other parties when there is an absence of effective leadership.

Studies are starting to explore the role of human resource management (HRM) in fostering organisational innovation, but empirical evidence remains contradictory and theory fragmented. This is partly because extant literature by and large adopts a unitary level of analysis, rather than reflecting on the multi‐level demands that innovation presents. Building on an emergent literature focused on HRM's role in shaping innovation, we shed light on the question of whether, and how, HRM might influence employees' innovative behaviours in the direction of strategically important goals. Drawing upon institutional theory, our contributions are threefold: to bring out the effect of two discrete HRM configurations – one underpinned by a control and the other by an entrepreneurial ethos, on attitudes and behaviours at the individual level; to reflect the way in which employee innovative behaviours arising from these HRM configurations coalesce to shape higher‐level phenomena, such as organisational‐level innovation; and to bring out two distinct patterns of bottom‐up emergence, one driven primarily by composition and the other by both composition and compilation.

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