HRM practices and innovation performance: a panel-data approach

What is it about?

The objective is to combine three different panel data for an entire period (2001-2008): patents, firm performance and HRM practices

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Why is it important?

Firstly, it measures both the individual and the interactional effects of certain HRM practices on patents. It also studies the mediating effect of patents in the relationship between HRM and firm performance. In studying HRM, innovation and performance together, this paper studies how HRM impacts on firm innovation, (Chen and Huang, 2009) and also contributes to the debate about the “black box” in HRM (Paauwe, 2009), as it considers innovation from the perspective of the generation of patents (an objective variable that can be measured andcontrolled) as a mediator explaining the positive effect of investment in employees on firm performance.