How do high performance work systems influence organizational innovation in professional service firms?

Purpose – The purpose of this paper is to examine how a system of human resource management (HRM) practices, labelled high-performance work systems (HPWS), influences organizational innovation in professional service firms (PSFs). In this study, innovation in PSFs is seen as an indicator of firm per...

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Vydáno v:Employee relations Ročník 37; číslo 2; s. 209 - 231
Hlavní autoři: Fu, Na, Flood, Patrick C, Bosak, Janine, Morris, Tim, O'Regan, Philip
Médium: Journal Article
Jazyk:angličtina
Vydáno: Bradford Emerald Group Publishing Limited 09.02.2015
Témata:
Accounting
Accounting firms
Design engineering
Employee relations
Employees
HR & organizational behaviour
Human resource management
Human resources
Hypotheses
Industrial/labour relations
Influence
Innovation
Innovations
Knowledge
Knowledge management
Knowledge sharing
Labor relations
Mathematical analysis
Organizational learning
Performance management
Regression analysis
Skills
Studies
Theory
Utilization
Ireland
Professional service firms
Employees’ innovative work behaviours
High-performance work systems
Organizational innovation
Human resource management
ISSN:0142-5455, 1758-7069
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Shrnutí:Purpose – The purpose of this paper is to examine how a system of human resource management (HRM) practices, labelled high-performance work systems (HPWS), influences organizational innovation in professional service firms (PSFs). In this study, innovation in PSFs is seen as an indicator of firm performance and is calculated as the revenue per person generated from new clients and new services, respectively. Design/methodology/approach – Quantitative data were collected from 195 managing partners, HR managers or experienced Partners in 120 Irish accounting firms. Hierarchical regression analysis was used to test the hypotheses. Findings – The analysis results indicate strong support for the mediating role of employees’ innovative work behaviours in the relationship between HPWS and two types of PSFs’ innovation performance. Practical implications – Managers need to effectively adopt and implement innovation-based HRM practices to encourage and support employees’ creative thinking and innovation. Through the adoption and utilization of these practices managers can enhance the firm’s innovation and its performance. Originality/value – This study contributes to our understanding of the link between HRM and firm innovation by explicating a pathway between these variables. This study also generalizes consistent findings on the HRM-firm innovation relationship to a different context, i.e. PSFs.
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ISSN:0142-5455
1758-7069
DOI:10.1108/ER-10-2013-0155