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The Impact of Labour Flexibility and HRM on Innovation
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Author(s): Haibo Zhou (Erasmus University Rotterdam, The Netherlands), Ronald Dekker (Delft University of Technology, The Netherlands & ReflecT at Tilburg University, The Netherlands)and Alfred Kleinknecht (Delft University of Technology, The Netherlands)
Copyright: 2010
Pages: 12
Source title:
Innovation in Business and Enterprise: Technologies and Frameworks
Source Author(s)/Editor(s): Latif Al-Hakim (University of Southern Queensland, Australia)and Chen Jin (Zhejiang University, China)
DOI: 10.4018/978-1-61520-643-8.ch011
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Abstract
We investigate the impact of labour relations (including use of flexible labour and certain HRM practices) on a firm’s innovative output. Using firm-level data for the Netherlands, we find that active HRM practices such as job rotation, performance pay, high qualification levels of personnel, as well as making use of employees with long-term temporary contracts contribute positively to innovative output, the latter being measured by the log of new product sales per employee. Furthermore, firms that retain high levels of highly qualified personnel are more likely to introduce products that are new to the market (other than only’new to the firm’). Our findings contribute to the growing literature on determinants of innovative performance.
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