Firm-level human resource management and innovation activities in production networks: a case study of Lao handicraft firms

ABSTRACT

This study examines the organizational aspects of industrial development in Laos, with a focus on how human resources interact with production and innovation activities at the firm level. Relative to that seen in other industries, for handicraft firms, human capital plays a more important role in new-product development and in various interaction processes. Therefore, this study leverages both theory and data from face-to-face interviews, while considering three selected handicraft firms from various study perspectives. Both parts of the analysis shed light on the informal and formal paths that firms take to generate innovation and achieve new-product development and changes. The study looks at the impact of other factors on firm-level innovation by examining both the internal and external factors that lead firms to diversify their product offerings, upgrade their processes, transfer knowledge and access global production networks. Finally, the study provides in-depth analysis of the nature of product development ideas, and offers both concrete conclusions and general recommendations.

KEYWORDS:

• Informal R&D
• innovation
• product changes
• production network
• knowledge transfers

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes on contributors

Mr. Xaysomphet Norasingh is a research leader and Deputy Director General of Economic Research Institute for Industry and Trade, Lao PDR. His research expertise is on investment and industry policy development as well as business innovation development, global value chain and production process.

Ms. Phouthaphone Southammavong is a research assistant of Economic Research Institute for Industry and Trade, Lao PDR. Her research mainly focuses on innovation and business development.