The impact of social and economic aspects of human resource management on the innovative capabilities of the organization

Abstract

Aim. The aim was to investigate the effects of social and economic aspects of human resource management to identify the necessary components, methods and their combination that form innovative capabilities in the organization.Objectives. To identify which methods of the economic or social aspect of human resource management have a greater impact on the innovative capabilities of the organization, as well as to determine the degree of development of these aspects in the organization to form the innovative capabilities of the organization.Methods. The study was conducted on the basis of a sociological survey based on 980 observations, the confirmation of hypotheses was based on the random effects model "within-intercept" to investigate not only fixed or internal effects, in which variables change over time, but also intermediate effects, in which variables do not change over time.Results. The following results were obtained in the study. First, organizational innovation capability is more strongly influenced by social aspects compared to economic aspects of human resource management. Second, there is no maximizing effect of the methods of the two aspects if they are applied equally. Third, the effects of social aspects are stronger as economic aspects of human resource management are introduced.Conclusions. The effects of the economic aspect of human resource management do not have an independent effect on the innovation capability of an organization. Therefore, increasing the level and complexity of economic methods of human resource management may be redundant or not necessary, for the formation of innovative capabilities of the organization. But social aspects of human resources management are not self-sufficient, rather economic aspects should be applied as a supplement to the social aspect of management. The degree of development of economic and social aspects in the organization is important, they should be coordinated and at a high level of development, only then there is a stimulating synergetic effect on the development of innovative capabilities of the organization. The conducted research contributes to the understanding of what aspects should be the basis of human resource management for the formation and increase of innovative capabilities of the organization.