An analysis of the relationship between total quality management-based human resource management practices and innovation

Abstract

Innovative management models consider human resources to be a key dimension in the innovation process and its performance. In particular, the knowledge of the people making up the staff and their creativity is fundamental. However, scant study has been made of what specific type of policies and practices in human resource management fosters better knowledge, attitudes and behaviour in the staff that will lead to the best performance in innovation. This paper studies the relationship between the policies and practices of human resource management from the viewpoint of total quality management and performance in innovation. Specifically, it is argued that there is a direct relationship, as well as a possible moderating effect, of strategic orientation towards innovation. An empirical study made of 106 Spanish industrial firms found no evidence of this moderating effect, although it did find evidence of a direct relationship and, in particular, of the positive effects of teamwork on technological innovation.

Keywords:

• human resource management
• innovation
• quality
• total quality management

Acknowledgements

This study was carried out within the framework of research project SEJ2007-63879/ECON, financed by the Dirección General de Investigación del Ministerio de Educación y Ciencia (State Office for Research of the Spanish Ministry of Education and Science) and by FEDER funds. Aid was also received from the research project SA093A05 financed by the Consejería de Educación de la Junta de Castilla y León (Regional Ministry of Education of Castile and Leon of Spain).

We are very grateful for the valuable help and comments of Professor Isabel Suárez. Likewise, the authors benefited from the comments of the anonymous referees of the journal. Notwithstanding, responsibility for any errors or lack of information is exclusively ours.

Notes

1. For the universalist approach there are some better human resource management practices that always positively affect firm performance; for the contingent approach, the effect of human resource management practices on firm performance depends on the context of the organization expressed in critical variables of contingency; and for the configurational approach, the effect of human resource management practices on firm performance is not exclusively the result of isolated practices but of a set or pattern of multiple interdependent practices that fulfil equifinality (Delery and Doty 1996; Doty, Glick and Huber 1993; Meyer, Tsui and Hinings 1993).

2. Besides strategy, contingent variables are considered: the type of environment; the organizational culture; the characteristics of the work force and the technological base of the firm (Barón and Kreps 1999).

3. Item five on the measurement scale has a factor loading of less than 0.55. However, we decided to maintain this item for reasons of practical significance and because we are replicating a measurement scale. That is, according to Hair et al. (1999), an item with a loading below the critical value has important practical significance, although not statistical significance, if the sample includes more than 100 observations. Moreover, the measurement scale suggested is an adjusted replica of the one posed in prior studies, which justifies retaining all the items.

4. Other potential sources of common method variance, such as consistency motif or social desirability (Podsakoff and Organ 1986), were discarded. Since there are no prevalent lay theories about HRMtqm practices and innovation performance, managers are not conditioned in this sense and the problem of consistency motif is unlikely to be present in this research. There are no relationships between the variables of this study that are more socially desirable than others (e.g. the relationships between certain HRMtqm dimensions and a type of innovation). Rather, what could be viewed as socially desirable is to score high in all the variables: use HRM practices, to be innovative, or to be strategically oriented towards innovation (society tends to interpret these features as positive). Therefore, the problem of social desirability, if present, converges with the problem of acquiescence bias since it would imply higher ratings for all the items in the questionnaire.