How Do HRM Practices Relate To Innovation Performance In Information Technology Firms

This paper investigates the relation between Human Resources Management (HRM) and innovation/performance in four firms operating in the Information Technology sector. A qualitative multiple case study methodology was used, and data collection included a documentary information analysis, and semi-structured interviews were held with HRM and innovation-related functions. The main results revealed that HRM practices are related to the best innovation and performance outputs. Moreover, some sector-specific HRM practicesInnovation/performance relations were found, with which prepositions are proposed. There is a high level of recruitment and selection, as well as compensation (salary, benefits and nonfinancial pay) practices due to the increasing need for these professionals in the labor market. Considering the generalization of compensation and benefits practices in the IT sector, it seems that the production of patents/utility models in organisations is more related to the investment in training and development, then to compensations and benefits practices. Few HRM practices that focus on promoting autonomy and self-management have a positive effect on innovation and can be at least as effective as a wider number of corporate HRM practices. This study contributes to the HRM relation to innovation performance literature, by its qualitative and longitudinal nature, the use of objective innovation and performance measures, and the prepositions specific to the IT sector that are suggested for future validation.