Knowledge Management and Human Resource Practices in an Innovation Perspective: Evidence from France

Abstract:     
This paper investigates arrangements capable of enhancing, capturing and utilizing knowledge within the firm. Using French data set, we aim at studying the complementarities between knowledge management and human resource management practices (henceforth, KM and HRM), and their impact on innovation. Based on a detailed descriptive analysis and cluster analysis we identify three clusters or bundles of organizational practices as KM and HRM practices systems. These three clusters are characterized respectively by (i) few practices and rules dedicated to innovation; (ii) half of the practices; and finally the polar case (iii) in which all the different KM and HRM practices are equally and used together. We estimate various econometric specifications that permit to conclude that KM and HRM practices bundles have significant and positive impact on innovation performance, while marginal changes in individual practices have little effect. Empirical evidence confirms that complementarities between KM and HRM practices exist such as these components practices reinforce each others. This paper permits to map out a more comprehensive structure and strategy of the firms in the knowledge-based economy.

Keywords: Knowledge management, Human resource management practices, Innovation, Complementarity, Factor analysis

JEL Classification: C21, D21, O32

Accepted Paper Series