Flexibility-Oriented HRM Systems, Absorptive Capacity, and Market Responsiveness and Firm Innovativeness

Abstract

Although market responsiveness and firm innovativeness are important aspects of firm performance, little is known about which human resource management (HRM) systems foster these performance aspects and how. Building on prior research, we delineate flexibility-oriented human resource management (FHRM) systems in terms of resource- and coordination-flexibility-oriented HRM subsystems. In addition, we draw on organizational learning theory and the concept of absorptive capacity (AC) to articulate the mechanisms through which these systems might influence market responsiveness and firm innovativeness. We develop and validate measures of FHRM systems using a series of four independent samples. Our findings based on a sample of high-technology firms indicate that FHRM systems are positively associated with firm-level potential and realized AC and that potential AC, in turn, is positively associated with market responsiveness and firm innovativeness.

How does cultural intelligence influence the relationships between potential and realised absorptive capacity and innovativeness? Evidence from Poland

“…The strong positive relationship between the two distinct yet complementary dimensions of ACAP (Zahra & George, 2002) has been consistently confirmed (Cepeda-Carrion et al, 2012;Chang et al, 2013;Leal-Rodríguez et al, 2014). Firm innovativeness typically involves constant influx of new ideas, knowledge, and practices (Capaldo, 2007;Gölgeci & Ponomarov, 2015).…”

“…ACAP comprises two complementary and interconnected constructs that underline the understanding of the concept at two distinct major stages. Those complementary and interconnected constructs are potential ACAP (PACAP) and realized ACAP (RACAP) (Chang et al, 2013;LealRodríguez et al, 2014), even though their demarcation may not be in absolute terms (Todorova & Durisin, 2007). The interface between PACAP and RACAP is a behaviorally intricate domain of processes (Volberda et al, 2009) that transform and apply today's knowledge for tomorrow's problems.…”

“…Thus, understanding the enablers of innovativeness is essential and is particularly relevant to many EMFs in order to transcend mediocre practices and ordinary products. One particular key concept studied repeatedly in relation to firm innovativeness has been absorptive capacity (ACAP) (Cepeda-Carrion, Cegarra-Navarro, & Jimenez -Jimenez, 2012; Chang et al, 2013;Cohen & Levinthal, 1990). These studies have established both potential absorptive capacity (PACAP) and realized absorptive capacity (RACAP) as key enablers of firm innovativeness.…”

“…Despite extensive research on the enablers of firm innovativeness (e.g., Cepeda-Carrion et al, 2012;Chang et al, 2013), less attention has been paid to the cultural aspects regarding firm innovativeness, especially in emerging market contexts. The role of the socio-cultural factors in EMFs' innovative capabilities and behavior has been largely overlooked in the literature (Van Everdingen & Waarts, 2003) in spite of largely recognized pervasive influence of culture on firm behavior and structure (Taras, Kirkman, & Steel, 2010).…”

Workplace Flexibility across the Lifespan

“…Wright and Snell's (1998) translation of these types of organizational flexibility towards HRM practices includes the notion of HRM practices being different across units, locations and teams, on the basis that HRM practices may have different utility depending on the context in which employees are conducting their work. Subsequent empirical research operationalized these types of flexibility in practices aimed at hiring and training employees such that they are able to conduct various roles in the organization (i.e., qualitative flexibility), and practices aimed at how quickly employees can be redeployed within an organization (i.e., quantitative flexibility; Chang et al, 2013). Other work took a person-based approach to flexibility by measuring employee skill and behavior flexibility, which focused on how broad the skills of the employees are, and how able employees are to adapt to changing work circumstances (Beltran-Martin & Roca-Puig, 2013;Beltran-Martin, Roca-Puig, Escrig-Tena, & Bou-Llusar, 2008;Bhattacharya, Gibson, & Doty, 2005).…”