Relational quality and innovative performance in R&D based science and technology firms

Abstract

The knowledge‐based view of the firm implies that the innovative performance of R&D based organisations is strongly influenced by the quality of their relational capital. However, the quality of the employment relationship has been underplayed in this perspective. A model is developed that tests the quality of three dimensions of the employment relationship – the psychological contract, affective commitment and knowledge‐sharing behaviours – and their consequences for innovative performance amongst 429 R&D employees in six different science and technology based firms. Analysis found that affective commitment plays an important role in mediating psychological contract fulfilment on knowledge‐sharing behaviour, which in turn is strongly related to innovative performance. More specifically, fulfilment of the job design dimension of the psychological contract has an independent positive association with innovative performance, whereas fulfilment of the performance pay dimension is negatively associated.

Fostering innovative behaviour: the importance of employee commitment and organisational citizenship behaviour

“…Thompson and Heron (2006) postulate that an employee's affective commitment to the organisation will impact on their propensity to share knowledge and be innovative. Based on past literature, it is expected that innovative behaviour will require the commitment of employees.…”

Managing knowledge through human resource practices: empirical examination on the Spanish automotive industry

“…Since human resources are the core focus of human resource management (HRM), researchers have pointed out the need to build and sustain a dialogue based on the understanding and awareness of the potential impact of HRM on KM targets (Robertson and O'Malley 2000;Gloet and Berrell 2003;Hislop 2003;Oltra 2003). Although the recognition that people management issues play a critical role in KM efforts, research has paid little attention to the linkages between KM and HRM (Hislop 2003; Thomson and Heron 2006). Further, as suggested by Hislop (2003), the weakness of these linkages between KM and HRM is to some extent because HRM academics are loath to enter the dialogue.…”

Corporate responsibility and financial performance: the role of intangible resources

“…R&D has long been associated with the innovative capacities of firms (e.g., Lichtenberg and Siegel, 1991;Anagnostopoulou and Levis, 2008). This capacity to innovate new products, technologies, and market ideas is strongly influenced by the quality of a firm's relational capital (Thomson and Heron, 2006), which in turn can be enhanced through a proactive social and environmental strategy (Sharma and Vredenburg, 1998). Furthermore, because the capability for generating new technology, products, and improved processes is costly for competitors to copy, innovation can become a source of competitive advantage (Russo and Fouts, 1997;Sharma and Vredenburg, 1998).…”