Twentieth International Conference on Knowledge, Culture, and Change in Organizations

Abstract

Human Resource Management (HRM) has a crucial role in driving innovation processes within companies, encouraging creativity, and knowledge sharing. Although there is considerable research in the scientific literature showing that there is a link between HRM and innovation strategy, and that HRM principles are not universal with different innovation strategies, there is a lack of research that reveals key features of HRM implementing different innovation strategies successfully. The purpose of this paper is to reveal the Human Resource Management compliance with an innovation strategy. In doing this, qualitative data were collected from Lithuanian manufacturing organizations using semi-structured interviews with thirty-one human resource (HR) managers. The research indicated that an incremental and radical innovation strategy implies different features of HRM in human resource sourcing, employees’ development, rewarding and employees’ relationship. In summary, the features of an inclusive HRM approach (for instance, internal career, development of generic competencies, process/efforts-oriented reward, teamwork, and attributes of commitment-based culture etc.) are more in line with an incremental innovation strategy, whereas the features of an exclusive HRM approach (for instance, talents’ attraction, stress of development of key/future oriented competencies, results-based reward, encouraging of leadership, agility, and attributes of adhocracy culture, etc.) are more compliant with a successful implementation of a radical innovation strategy. It was also found that in addition to specific features of HRM, great emphasis should be placed on preparing for change and continuous communication in the case of a radical innovation strategy.