Which organisational changes are most beneficial for firm innovation?

Abstract

This paper identifies which types of organisational HRM changes are most beneficial for firm innovation by using a treatment effects analysis and a large dataset of firms from emerging economies. The paper finds that organisational changes have a positive disruptive effect on firm product innovation outcomes. However, there is an organisational change hierarchy - where some HRM practices are more important than others. HRM practices that involve engaging with external partners, via collaboration and outsourcing have the largest effect on product innovation outcomes.