Forming a firm innovation strategy through commitment-based human resource management

What is it about?

In this paper, we argue that commitment-based human resource management (CHRM) enables firms to form an innovation strategy, enriching the literature focused on the subordinate role of HRM in a given strategy. In CHRM, employees are hired based on their knowledge, their expertise is developed, and they are empowered to take reasonable risks in the interest of long-term outcomes. These HRM policies, which mediated by innovative work practices, enable firms to realize their strategic intention to engage in innovation. Analyses of time-lagged data from 445 firms support our hypotheses, and implications are discussed.

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Why is it important?

Adopting Grant’s (1991) view, we examined HRM as an organizational capability that comprised building rules, policies, and a group problem-solving mechanism. We provide evidence that HRM capability enables firms to realize their strategic intention, offering a new perspective for understanding the hidden role of HRM.

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