A literature review on HRM and innovation – taking stock and future directions

Abstract

This article reviews the growing body of empirical evidence (N = 35) on the impact of HRM on innovation that has been published during the past 25 years (1990–2015). Our most definitive finding concerns the impact of bundled HRM practices, which can be firmly linked to innovation. The role of high-commitment practice bundles appears particularly important. Studies on the various individual practices indicate that practices that foster employee commitment, loyalty, learning and intrinsic motivation are conducive to innovation. Some evidence points to the role of macro- and micro-level moderators setting boundary conditions (e.g. industry and strategy) for the HRM–innovation relationship and to mediators, such as creativity and knowledge management, as explanatory mechanisms as to why HRM impacts innovation. We noted a number of insufficiently covered areas that call for further research. We present four specific recommendations: (1) different phases of the innovation process deserve greater attention; (2) the invention of radical innovation warrants further investigation; (3) measurement of innovation and HRM should be more consistent; and (4) the theoretical underpinnings of the relationship between HRM and innovation should be strengthened. We conclude by reflecting the ‘black box’ stage between HRM and innovation through the AMO framework.

Keywords:

• Human resource management
• innovation
• review

Acknowledgements

The authors thank the anonymous reviewers and Associate Editor, Paul Boselie, for thorough and useful comments. The authors also thank the presenters and other participants of Academy of Management Annual Meeting 2013 program session Strategic HR and Creativity and Innovation for comments. In particular, thanks to session Chair Riki Takeuchi for guidance and encouragement.