SHRM and product innovation: testing the moderating effects of organizational culture and structure in Chinese firms

Abstract

Prior studies have found a positive effect of strategic human resource management (SHRM) on firm performance. However, little research has been done to understand how SHRM is employed to facilitate product innovation. Following the contextual perspective of SHRM, this study examines an interactive model in which corporate culture and structure are proposed to moderate the SHRM–product innovation relationship. Empirical results from a sample of 223 Chinese enterprises indicate that SHRM has a positive impact on firms' product innovation and this relationship is stronger for firms with a developmental culture. Furthermore, an examination of three-way interactions indicates that in firms with a flatter structure, the relationship between SHRM and a developmental culture is stronger.

Keywords:

• China
• corporate culture
• developmental culture
• organizational structure
• product innovation
• strategic human resource management

Acknowledgements

This study was supported by a research grant from the Hong Kong Baptist University (FRG/07-08/I-26) to the first author. An earlier version of this article was published in the Best Paper Proceedings (top 10%) of the Academy of International Business (AIB) Annual Meeting, June 2008, Milan, Italy.

Notes

1. [email protected]

2. [email protected]

Additional information

Notes on contributors

Jun Liu

1

Neil C. Herndon

2