Flexibility and innovation: moderator effects of cooperation and dynamism

Abstract

Purpose The purpose of this paper is to analyze simultaneously two moderator effects on a model of relationships between external human resource (HR) flexibility and innovation in a large sample of manufacturing firms. Design/methodology/approach The study sample consisted of 1,864 Spanish industrial firms in 2012 compiled from a large set of statements from the Survey of Business Strategies questionnaire. Logit and linear regressions tested the moderator effects of inter-organizational technology cooperation and environmental (market) dynamism in the relationship between external HR flexibility and innovation performance. To control for multicollinearity the Lance’s residual centering technique was used. Findings Process innovations seemed to be dependent on industry while innovative firms have developed a greater flexibility than non-innovative firms. Some moderator effects were found regarding inter-organizational cooperation while the market dynamism was negatively related to the measures of innovation with absence of moderator effects. Research limitations/implications Future studies should integrate more moderator effects that may influence the relationship between external HR flexibility and the firm’s innovation performance. The results regarding the influences of external flexibility on innovation have to be differentiated as inter-organizational technological cooperation compensated the influence of external workplace flexibility on innovation. Practical implications Managers should use a right mix of external flexibility measures according to the inter-organizational cooperation but regardless the level of environmental dynamism. Originality/value This paper is original in the sense that it studies the relationship between external HR flexibility and innovation with the simultaneous moderator effect of inter-organizational technology cooperation and market dynamism. The value of the paper lies in the discussion of interrelated moderator effects in order to propose adequate strategies to develop external HR flexibility.