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Abstract
Each individual member of an organization must recognize and lead innovation, which can be affected by human resource development (HRD) investments and organizational changes. In this study, we aimed to verify how HRD investment at the individual level relates to employee perceptions of organizational innovativeness and to examine how the intensity of organizational change, a situational factor at the organizational level, affects the relationship between HRD investment and employee perceptions of organizational innovativeness through multilevel analysis using hierarchical linear models. We performed an analysis based on the responses from 5184 workers and 125 companies where corporate-level and personal-level data were matched in a Human Capital Corporate Panel (HCCP) survey. HRD investment by employees was shown to increase the perception of organizational innovativeness. The results demonstrated that the intensity of organizational change moderated the relationship between HRD investment and the perception of organizational innovativeness. However, the stronger the organizational change intensity, the weaker the positive effect of HRD investment on the perception of organizational innovativeness. Finally, we presented theoretical and practical implications and further research tasks related to the HRD of corporations and open innovation.
Highlights
The competitiveness of human resources affects corporate performance and becomes a sustainable competitive advantage
Through a multilevel analysis using hierarchical linear models, we investigated, first, how human resource development (HRD) investment at the individual level related to employee perceptions of organizational innovativeness and, second, how the intensity of organizational change, a situational factor at the organizational level, affected the relationship between HRD investment and employee perceptions of organizational innovativeness
This study was a multilevel model that verified the effect of individual-level HRD investments and firm-level organizational change intensity on employee perceptions of organizational innovativeness
Summary
The competitiveness of human resources affects corporate performance and becomes a sustainable competitive advantage. From a resource-based view, knowledge and experience of human resources are scarce and can create a competitive advantage as it is difficult for other companies to emulate [1]. The development of human resources, which are intangible resources, means bringing positive changes to knowledge, skills, and abilities through training and development of the members of the organization [2]. There is a theoretical consensus in the relationship between human resource development (HRD) investment and corporate performance, there is still a lack of empirical analysis. There is still skepticism regarding whether training and development conducted at corporate sites induce changes in employee behaviors and attitudes or directly affect corporate performance [3].
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