Firm-level human resource management and innovation activities in production networks: a case study of Lao handicraft firms

Abstract

ABSTRACTThis study examines the organizational aspects of industrial development in Laos, with a focus on how human resources interact with production and innovation activities at the firm level. Relative to that seen in other industries, for handicraft firms, human capital plays a more important role in new-product development and in various interaction processes. Therefore, this study leverages both theory and data from face-to-face interviews, while considering three selected handicraft firms from various study perspectives. Both parts of the analysis shed light on the informal and formal paths that firms take to generate innovation and achieve new-product development and changes. The study looks at the impact of other factors on firm-level innovation by examining both the internal and external factors that lead firms to diversify their product offerings, upgrade their processes, transfer knowledge and access global production networks. Finally, the study provides in-depth analysis of the nature of product development ideas, and offers both concrete conclusions and general recommendations.