New Human Resource Management Systems in Non-Based-Knowledge Firms: Applications for Decision Making on the Business Performance

Abstract

The aim of this paper is double. First, it provides a conceptual framework and modelling of the relationship between human resource management (HRM) systems and non-based-knowledge firms. Second, using survey data on 1.518 Catalan firms (in Spain, with capital in Barcelona), the paper: 1) identify two system of HRM (in progress HRM system and non-HRM developed system); 2) build a causal model of determinants of HRM systems; and 3) describe the association links between in progress HRM system and firm’s performance. Using factor and cluster analysis, we find that only one-third of firms use in progress HRM system. Using logit binomial analysis, we find that features which are structural, technological, strategic, organisational and performance-related explain the adoption of in progress HRM system. Finally, using association analysis, we find that firms that adopt in progress HRM system: 1) are more internationalised and show greater ability to adapt to the changing environment, to innovate and to collaborate; 2) focus on product/service differentiation strategy enhancing quality; 3) apply a greater degree of new forms of work organization; 4) have more technological equipment and use IT more intensively; and 5) invest more in training their employees, than firms with non-HRM system developed.

Share and Cite:

P. Ficapal-Cusí and J. Torrent-Sellens, "New Human Resource Management Systems in Non-Based-Knowledge Firms: Applications for Decision Making on the Business Performance," Modern Economy, Vol. 5 No. 2, 2014, pp. 139-151. doi: 10.4236/me.2014.52016.

Conflicts of Interest

The authors declare no conflicts of interest.

References

[1] M. Castells, “The Rise of the Network Society,” Blackwell, Oxford, 1996.
[2] M. Castells, “The Network Society. A Cross-cultural Perspective,” Edward Elgar, Cheltenham and Northampton, 2004.
[3] M. Carnoy, “Sustaining the New Economy: Work, Family, and Community in the Information Age,” Russell Sage Foundation/Harvard University Press, New York, 2000.
[4] R. M. Lindley, “Knowledge-based Economies: the European Employment Debate in a New Context,” In: M.J. Rodrigues, Ed., The New Knowledge Economy in Europe. A Strategy for International Competitiveness and Social Cohesion, Edward Elgar, Cheltenham and Northampton, 2002, pp. 95-145.
[5] A. Pettigrew, R. Whittington, L. Melin, C. SanchezRunde, F. A. J. Van den Bosch, W. Ruigrok and T. Numagami, “Forms of Organising,” Sage, London, 2003.
[6] I. Svetlik and E. Stavrou-Costea, “Connecting Human Resources Management and Knowledge Management,” International Journal of Manpower, Vol. 28, No. 3-4, 2007, pp. 197-206.
http://dx.doi.org/10.1108/01437720710755209
[7] M. . Lengick-Hall and S. Moritz, “The Impact of e-HR on the Human Resource Management Function,” Journal of Labor Research, Vol. 24, No. 3, 2003, pp. 365-379.
http://dx.doi.org/10.1007/s12122-003-1001-6
[8] H. J. M. Ruël, T. Bondarouk and J. C. Looise, “E-HRM: Innovation or Irritation. An Explorative Empirical Study in Five Large Companies on Web-based HRM,” Management Review, Vol. 15, No. 3, 2004, pp. 364-381.
[9] S. Strohmeier, “Research in e-HRM: Review and Implications,” Human Resource Management Review, Vol. 17, No. 1, 2007, pp. 19-37.
http://dx.doi.org/10.1016/j.hrmr.2006.11.002
[10] J. Baron and D. M. Kreeps, “Strategic Human Resources,” John Wiley, New York, 1999.
[11] M. Murphy, “Organisational Changes and Firm Performance,”OECD STI Working Papers No. 14, OECD, Paris, 2002. http://dx.doi.org/10.1787/615168153531
[12] J. Vilaseca-Requena, J. Torrent-Sellens and A. I. Jimenez-Zarco, “ICT Use in Marketing as Innovation Success Factor: Enhancing Cooperation in New Product Development Processes,” European Journal of Innovation Management, Vol. 10, No. 2, 2007, pp. 268-288.
http://dx.doi.org/10.1108/14601060710745297
[13] B.-A. Lundvall and P. Nielsen, “Knowledge Management and Innovation Performance,” International Journal of Manpower, Vol. 28, No. 3-4, 2007, pp. 207-223.
http://dx.doi.org/10.1108/01437720710755218
[14] K. Shaw, “By What Means Does Information Technology Affect Employment and Wages?” In: N. Greenan, Y. L’Horty and J. Mairesse, Eds., Productivity, Inequality, and the Digital Economy. A Transatlantic Perspective. MIT Press, Cambridge, 2002, pp. 229-267.
[15] N. J. Foss, “Strategy, Economic Organization, and the Knowledge Economy. The Coordination of Firms and Resources,” Oxford University Press, Oxford and New York, 2005.
http://dx.doi.org/10.1093/0199240647.001.0001
[16] D. L. Stone, E. F. Stone-Romero and K. Lukaszewski, “Factors Affecting the Acceptance and Effectiveness of Electronic Human Resource Systems,” Human Resource Management Review, Vol. 16, No. 2, 2006, pp. 229-244.
http://dx.doi.org/10.1016/j.hrmr.2006.03.010
[17] P. Ficapal-Cusí, J. Torrent-Sellens and P. Curòs-Vilà, “Information Technology, Human Resources Management Systems and Firm Performance: An Empirical Analysis from Spain,” Journal of Systemics, Cybernetics and Informatics, Vol. 9, No. 2, 2011, pp. 32-38.
[18] J. Vilaseca-Requena and J. Torrent-Sellens, “ICTs and Transformations in Catalan Companies,” Innovation and Firm Development Centre, Government of Catalonia, Barcelona, 2004.
[19] M. A. Huselid, “The Impact of Human Resources Management Practices on Turnover, Productivity and Corporate Financial Performance,” Academy of Management Journal, Vol. 38, No. 3, 1995, pp. 635-672.
http://dx.doi.org/10.2307/256741
[20] C. Ichniowski, “Human Resources Management Systems and the Performance of U.S. Manufacturing Business,” NBER Working Paper 3449, Cambridge, 1990.
[21] P. Osterman, “How Common Is Workplace Transformations and Who Adopts It?” Industrial and Labour Relations Review, Vol. 47, No. 2, 1994, pp. 173-187.
http://dx.doi.org/10.2307/2524415
[22] T. Kochan and P. Osterman, “The Mutual Gains Enterprise,” Harvard Business School Press, Cambridge, 1994.
[23] E. Appelbaum, T. Bailey, P. Berg and A. L. Kallerberg, “Manufacturing Advantage. Why High-Performance Work Systems Pay Off?” In: E. Appelbaum and A. L. Kallerberg, Ed., Measuring the Components of a HighPerformance Work System, Cornell University Press, Ithaca, 2000, pp. 208-254.
[24] E. Carayannis and J. Sagi, “New vs. Old Economy: Insights on Competitiveness in the global IT Industry,” Technovation, Vol. 21, No. 8, 2001, pp. 501-514.
http://dx.doi.org/10.1016/S0166-4972(00)00072-9
[25] J. Child and R. G. McGrath, “The Organizations Unfettered: Organizational Form in an Information-intensive Economy,” Academy of Management Journal, Vol. 44, No. 6, 2001, pp. 1135-1149.
http://dx.doi.org/10.2307/3069393
[26] J. Gant, C. Ichniowski and K. Shaw, “Social Capital and Organizational Change in High-involvement and Traditional Work Organizations,” Journal of Economics & Management Strategy, Vol. 11, No. 2, 2002, pp. 289-328.
http://dx.doi.org/10.1162/105864002317474576
[27] E. Lawler, S. A. Mohrman and G. E. Ledford, “Strategies for High Performance Organizations. The CEO Report: Employee Involvement, TQM and Reengineering Programs in Fortune 1000 Corporations,” Jossey-Bass, San Francisco, 1998.
[28] J. P. MacDuffie, “Human Resource Bundles and Manufacturing Performance: Organizational Logic and Flexible Production Systems in the World Auto Industry,” Industrial and Labor Relations Review, Vol. 48, 1995, pp. 197-221. http://dx.doi.org/10.2307/2524483
[29] J. Pfeffer, “New Directions for Organization Theory: Problems and Prospects,” Oxford University Press, New York, 1997.
[30] F. K. Pil and J. P. MacDuffie, “The Adoption of High-Involvement Work Practices,” Industrial Relations, Vol. 35, No. 3, 1996, pp. 423-455.
http://dx.doi.org/10.1111/j.1468-232X.1996.tb00414.x
[31] C. Ichniowski, K. Shaw and G. Prennushi, “The Effects of Human Resources Management Practices on Productivity: A Study of Steel Finishing Lines,” American Economic Review, Vol. 87, No. 3, 1997, pp. 291-313.
[32] E. Brynjolfsson and L. M. Hitt, “Beyond Computation: Information Technology, Organizational Transformation, and Business Performance,” Journal of Economic Perspectives, Vol. 14, No. 4, 2000, pp. 23-48.
http://dx.doi.org/10.1257/jep.14.4.23
[33] T. F. Bresnahan, E. Brynjolfsson and L. M. Hitt, “Information Technology, Workplace Organization and the Demand for Skilled Labor: A Firm-level Evidence,” Quarterly Journal of Economics, Vol. 117, No. 1, 2002, pp. 339-376.
http://dx.doi.org/10.1162/003355302753399526
[34] A. P. Bartel, C. Ichniowski and K. Shaw, “The Strategic Investment in Information Technologies and New Human Resource Practices and their Effects on Productivity: An insider-Econometric Analysis,” National Bureau of Economic Research Summer Institute, Cambridge, 2004.
[35] S. E. Black and L. M. Lynch, “How to Compete: The Impact of Workplace Practices and Information Technology on Productivity,” Review of Economics and Statistics, Vol. 83, No. 3, 2001, pp. 434-445.
http://dx.doi.org/10.1162/00346530152480081
[36] S. E. Black and L. M. Lynch, “What’s Driving the New Economy? The Benefits of Workplace Innovation,” The Economic Journal, Vol. 114, No. 493, 2004, pp. F97-F116.
http://dx.doi.org/10.1111/j.0013-0133.2004.00189.x
[37] E. Brynjolfsson and L. M. Hitt, “Computing Productivity: Firm-Level Evidence,” Review of Economics and Statistics, Vol. 85, No. 4, 2003, pp. 793-808.
http://dx.doi.org/10.1162/003465303772815736
[38] S. Arvanitis, “Computerization, Workplace Organization, Skilled Labour and Firm Productivity: Evidence from the Swiss Business Sector,” Economics of Innovation and New Technologies, Vol. 14, No. 4, 2005, pp. 225-249.
http://dx.doi.org/10.1080/1043859042000226257
[39] N. Bloom, L. Garicano, R. Sadun and J. Van Reenen, “The Distinct Effects of Information Technology and Communication Technology on Firm Organization,” NBER Working Paper, No. 14975, Cambridge, 2009.
[40] N. Bloom, R. Sadun and J. Van Reenen, “The Organization of Firms across Countries,” NBER Working Paper, No. 15129, Cambridge, 2009.
[41] P. Osterman, “Work Reorganization in an Era of Restructuring: Trends in Diffusion and Effects on Employee Welfare,” Industrial and Labour Relations Review, Vol. 53, No. 2, 2000, pp. 179-196.
http://dx.doi.org/10.2307/2696072
[42] G. Boning, C. Ichniowski and K. Shaw, “Opportunity Counts: Teams and the Effectiveness of Production Incentives,” NBER Working Paper, No. 8306, Cambridge, 2001.
[43] E. Caroli and J. Van Reenen, “Skill Biased Organizational Change? Evidence from a Panel of British and French Establishments,” Quarterly Journal of Economics, Vol. 116, No. 4, 2001, pp. 1449-1492.
http://dx.doi.org/10.1162/003355301753265624
[44] P. Osterman, “The Wage Effects of High Performance Work Organization in Manufacturing,” Industrial and Labour Relations Review, Vol. 59, No. 2, 2006, pp. 187-204.
[45] J. Torrent-Sellens and J. Vilaseca-Requena, “The Network Company in Catalonia: ICT, Productivity, Competitiveness, Wages and Returns in Catalonia’s Firms,” Open University of Catalonia (UOC), Barcelona.
http://www.uoc.edu/in3/pic/eng/network_company.html.
[46] OECD, “OECD Information Technology Outlook. ICTs and the Information Economy,” OECD, Paris, 2002.
[47] OECD, “ICT and Economic Growth. Evidence from OECD Countries, Industries, and Firms,” OECD, Paris, 2003.
[48] Chartered Institute of Personnel and Development (CIPD), “Recruitment, Retention and Turnover 2007: Annual Survey Report,” CIPD, London, 2007.
[49] K. Kamoche and F. Mueller, “Human Resource Management and the Appropriation-Learning Perspective,” Human Relations, Vol. 51, No. 8, 1998, pp. 1033-1060.
http://dx.doi.org/10.1177/001872679805100803
[50] C. García-Olaverri, E. Huerta-Arribas and M. LarrazaKintana, “Human and Organizational Capital: Typologies among Spanish Firms,” International Journal of Human Resource Management, Vol. 17, No. 2, 2006, pp. 316-330. http://dx.doi.org/10.1080/09585190500404788.

Copyright © 2023 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.