Which organisational changes are most beneficial for firm innovation?

Authors

  • Jane Bourke
  • Frank Crowley University College Cork

DOI:

https://doi.org/10.17811/ebl.5.4.2016.152-158

Abstract

This paper identifies which types of organisational HRM changes are most beneficial for firm innovation by using a treatment effects analysis and a large dataset of firms from emerging economies. The paper finds that organisational changes have a positive disruptive effect on firm product innovation outcomes. However, there is an organisational change hierarchy - where some HRM practices are more important than others. HRM practices that involve engaging with external partners, via collaboration and outsourcing have the largest effect on product innovation outcomes.

Author Biography

Frank Crowley, University College Cork

Dr. Jane Bourke is a lecturer in Economics at University College Cork. Jane holds BComm and MEconSc degrees from University College Cork and a PhD from Warwick Business School.  Jane's research interests are in the areas of innovation & technological change, adoption and diffusion of innovations, and health economics. Jane has presented her research at national and international conferences, and has recently published in the European Journal of Health Economics, Health Policy, the International Journal of Innovation Management and the Expert Review of Pharmacoeconomics & Outcomes Research.

Frank Crowley has a PhD qualification from the University of Groningen. Frank is a lecturer in the School of Economics, UCC, Ireland. Frank's main research interests include innovation, government intervention and regional policy, management practices and firm performance. Frank has recent publications in the International journal of innovation management and spatial economic analysis.

References

Abrunhosa, A. and P. Moura E Sá (2008). Are TQM principles supporting innovation in the Portuguese footwear industry? Technovation 28:208-221.

Bank, E-W (2014). Business environment and enterprise performance survey. Enterprise Surveys (http://www.enterprisesurveys.org), The World Bank

Bourke, J. and F. Crowley (2015). The Role of HRM and ICT Complementarities in Firm Innovation: Evidence from Transition Economies. International Journal of Innovation Management 19.

Combs, J.; Y.M. Liu; A. Hall; and D. Ketchen (2006). How much do high-performance work practices matter? A meta-analysis of their effects on organizational performance. Personnel Psychology 59:501-528.

Crowley, F. and J. Bourke (2016). The Influence of Human Resource Management Systems on Innovation: Evidence from Irish Manufacturing and Service Firms. International Journal of Innovation Management 20.

Cuijpers, M.; H. Guenter; and K. Hussinger (2011). Costs and benefits of inter-departmental innovation collaboration. Research Policy 40:565-575.

Gibson, C.B. and J.L. Gibbs (2006). Unpacking the concept of virtuality: the effects of geographic dispersion, electronic dependence, dynamic structure, and national diversity on team innovation. Administrative Science Quarterly 51:451-495.

Gordon, N.R. and P. McCann (2005). Innovation, agglomeration, and regional development. Vol. 5, Issue 5, pp. 523-543, 2005. . Journal of Economic Geography 5:523-543.

Guest, D.E. (2011). Human resource management and performance: still searching for some answers. Human Resource Management Journal 21:3-13.

Hurmelinna-Laukkanen, P. and Gomes, J., (2012). HRM system strength–HRM harnessed for innovation, appropriability and firm performance.Economics and Business Letters, 1(4), pp.43-53.

He, Z.L. and P.K. Wong (2012). Reaching Out and Reaching Within: A Study of the Relationship between Innovation Collaboration and Innovation Performance. Industry and Innovation 19:539-561.

Hewitt-Dundas, N. (2004). The adoption of AMT and innovation strategy in small firms. International Journal of Innovation and Technology Management 1:17-36.

Laursen, K. and N.J. Foss (2003). New human resource management practices, complementarities and the impact on innovation performance. Cambridge Journal of economics 27:243-263.

Laursen, K.; V. Mahnke; and P. Vejrup-Hansen (2005). Do differences make a difference? The impact of human capital diversity, experience and compensation on firm performance in engineering. In Druid Working Paper Series 5

Love, J.H. and S. Roper (2001). Outsourcing in the innovation process: Locational and strategic determinants. Papers in Regional Science 80:317-336. 2004. The Organisation of Innovation: Collaboration, Cooperation and Multifunctional Groups in UK and German Manufacturing. Cambridge Journal of economics 28:379-395.

Love, J.H.; S. Roper; and J.R. Bryson (2011). Openness, knowledge, innovation and growth in UK business services. Research Policy 40:1438-1452.

Love, J.H.; S. Roper; and J. Du (2009). Innovation, Ownership and Profitability. Internation Journal of Industrial Organization.

Mansury, M.A. and J.H. Love (2008). Innovation, productivity and growth in US business services: a firm-level analysis. Technovation 28:52-62.

Romer, P.M. (1990). Endogenous Technological Change. Journal of

Political Economy 98:S71-S102.

Roper, S.; N. Hewitt-Dundas; and J.H. Love (2004). An Ex Ante Evaluation Framework for the Regional Benefits of Publicly Supported R&D Projects. Research Policy 33:487-509.

Santos-Vijande, M.L. and L.I. Álvarez-González (2007). Innovativeness and organizational innovation in total quality oriented firms: The moderating role of market turbulence. Technovation 27:514-532.

Tether, B.; A. Mina; D. Consoli; and D. Gagliardi (2005). A Literature Review on Skills and Innovation. How Does Successful Innovation Impact on the Demand for Skills and How Do Skills Driven Innovation? . In University of Manchester: ESRC Centre on Innovation and Competition,.

Todnem By, R. (2005). Organisational change management: A critical review. Journal of Change Management 5:369-380.

Toner, P. (2011). Workforce skills and innovation - an overview of major themes in the literature. In STI Working Paper ed. T.a.I.S. OECD Directorate for Science. Paris: OECD.

Downloads

Published

24-10-2016

How to Cite

Bourke, J., & Crowley, F. (2016). Which organisational changes are most beneficial for firm innovation?. Economics and Business Letters, 5(4), 152–158. https://doi.org/10.17811/ebl.5.4.2016.152-158

Issue

Vol. 5 No. 4 (2016): December - Special Issue Selected papers from 2nd AMEF (May 2016)

Section

Articles

License

The works published in this journal are subject to the following terms:

1. Oviedo University Press (the publisher) retains the property rights (copyright) of published works, and encourages and enables the reuse of the same under the license specified in paragraph 2.

© Ediuno. Ediciones de la Universidad de Oviedo / Oviedo University Press

2. The works are published in the online edition of the journal under a Creative Commons Attribution-Non Commercial-Non Derives 3.0 Spain (legal text). You can copy, use, distribute, transmit and publicly display, provided that: i) you cite the author and the original source of publication (journal, publisher and URL of the work), ii) they are not used for commercial purposes, iii) mentions the existence and specifications of this license.

3. Conditions of self-archiving. The author can archive the post-print version of the article (publisher’s version) on the author’s personal website and/or on the web of  the institution where he belong, including a link to the page of the journal and putting the way of citation of the work. Economics and Business Letters and its URL https://reunido.uniovi.es/index.php/EBL/index are the only authorized source for correctly giving the reference of the publisher’s version in every mention of the article.