We investigate the impact of labour relations (including use of flexible labour and certain HRM practices) on a firm's innovative output. Using firm-level data for the Netherlands, we find that active HRM practices such as job rotation, performance pay, high qualification levels of personnel, as well as making use of employees with long-term temporary contracts contribute positively to innovative output, the latter being measured by the log of new product sales per employee. Furthermore, firms that retain high levels of highly qualified personnel are more likely to introduce products that are new to the market (other than only 'new to the firm'). Our findings contribute to the growing literature on determinants of innovative performance.
|Title of host publication||Innovation in Business and Enterprise|
|Subtitle of host publication||Technologies and Frameworks|
|Number of pages||12|
|Publication status||Published - 2010|
ASJC Scopus subject areas
- Business, Management and Accounting (all)