HRM practices for human and social capital development: effects on innovation capabilities

Abstract

This paper analyzes the effect of systems of human resource management (HRM) practices on a company's innovation capabilities. To date, few studies have analyzed the way a firm may be more innovative by using specific sets of high-performance HRM practices from an intellectual capital-based view of the firm. From an extensive literature review, a model was established and tested through structural equation modelling, using the statistical technique of partial least squares. The study was applied to a sample of technological firms in Spain and the results show that high-profile personal HRM practices positively influence human capital while collaborative HRM practices influence social capital, which, in turn, affect innovation capabilities by means of, respectively, total and partial mediating effects. Managerial and HRM implications of these results are drawn by the authors, highlighting the idea of paying increased attention to managing firms with a focus on strategic intangible assets in order to gain competitive advantages based on innovation.

Transformational leadership, social capital and organizational innovation

“…To develop ISC, organizations must build trust, motivate information sharing, and strengthen a shared vision. To develop ESC, organizations must mobilize TMT members to establish and maintain strong ties with various external actors (Donate et al, 2015). Providing motivation, sharpening network building skills, and creating opportunities would be some effective approaches to help establish external managerial ties (Mccallum and O'Connell, 2009).…”

Standard HRM Practices: A Review & Theoratical Framework

“…Recruitment & Selection are one of the essential, fundamental, vital & indispensable HR practices (Aladwan et al, 2015); (Albrecht et al, 2015); (Ceylan, 2013); (Delery & Gupta, 2016); (Donate et al 2015); (Lewis, 2003); (MacDuffie, 1995); (Petrescu & Simmons, 2008); (Zheng et al 2007); (Zibarras & Coan, 2015). "Specifically, recruitment refers to the range of processes an organization uses to attract qualified individuals on a timely basis and in sufficient numbers and to encourage them to apply for jobs in the organization" (Fried & Fottler, 2008)Since Recruitment of the best employees is a crucial constituent for organizational success recruiters ought to understand the applicants' needs and enhance their recruitment services to address needs with a specific end goal to attract more qualified applicants.…”

“…Performance Appraisal: Performance Appraisal is especially critical HR practice for organizations to achieve desired outcomes including success of its performance management system. (Aladwan et al, 2015); (Delery & Doty, 1996); (Donate et al 2015); Kinnie et al 2005;(Maresaux et al, 2012); (Winfield, 1994); (Zibarras & Coan, 2015). Nowadays managers are aware of the real worth of their human resources considering it as an investment rather than merely an expense or overhead to be minimized.…”

“…High Profile Personal HR Practices: Rigorous and extensive selection processes, Performance appraisal processes tolerating mistakes, Extensive offer of training plans, High-compensation systems based on knowledge (Donate et al 2015) HRM practices Author application and skills development 2.…”

“…Training and development are very essential from both individual and organizational perspective (Aladwan et al ,2015;(Albrecht et al, 2015); (Ceylan, 2013); (Delery & Doty, 1996); (Deshpande & Golhar, 1997); (Donate et al 2015); (Fey et al, 2000); Kinnie et al 2005; (Lewis, 2003); (Maheshwari & Vohra, 2015); (MacDuffie, 1995); (Maresaux et al, 2012); (Ngo et al, 1998); (Petrescu & Simmons, 2008); (Veth, Korzilius, Van der Heijden, Emans, & De Lange, 2017).Although organizations are using training and development as an intend to satisfy the gap between predetermined standard and real performance of employees for quite a while, however now a days training and development activities seek to accentuate flexibility, adaptability, and consistent improvement to ensure that organizations can survive and compete in a perpetually competitive environment (Nickson, 2007). Performance Appraisal: Performance Appraisal is especially critical HR practice for organizations to achieve desired outcomes including success of its performance management system.…”