The Organisation's Size-Innovation Performance Relationship: The Role of Human Resource Development Mechanisms

Abstract

Design: The paper relies on a quantitative analysis of 707 Dutch companies. Purpose: Prior research focussed on the positive relationship between organisation’s size and its innovation performance. This study investigates the role of human resource development mechanisms, in particular organisational learning and renewal of human resource management practices in this relationship. Findings: The analysis of survey data revealed that, taking into account several background variables, smaller organisations have lower innovation performance than larger ones. The differences between organisations disappear after organisational learning practices and renewal of human resource management are taken into account. These two human resource development mechanisms are, in turn, positively related to innovation performance. Originality: Prior research focussed on the direct relationship between organisations’ size and innovation performance. This paper examines this relationship more closely by focussing on intermediating mechanisms.