Human resource management practices and innovation in Colombian firms

Abstract

PurposeThis paper takes a closer look at the way firms combine human resources from different departments by analyzing firm-level data obtained from a series of innovation surveys conducted in Colombia by Departamento Administrativo Nacional de Estadística (DANE). In particular, the authors inquire into whether there are differences in innovation performance between firms that combine human resources from different departments and firms that choose not to do so.Design/methodology/approachThe authors apply a complementarity test between firms that combine human resources from different departments and firms that choose not to do so. As performance variables, the authors consider the propensity to innovate, the number of new innovative products that the firm introduces, the proportion of sales coming from products new to the firm and sales from new products as a percentage of current innovation expenditures.FindingsThe authors find that firms with an internal research and development (R&D) department have a better innovation performance, but the authors do not find evidence of the existence of complementarity between workers in R&D and workers in other departments, and the authors find some evidence that suggests substitutability in the case of product innovations.Practical implicationsThis paper provides managers with insights about how to deploy employees to improve firm innovation performance of employees.Originality/valueThis paper combines innovation literature with human resources management literature and applies a robust methodology to data not previously tested for the same purposes.