Ramón Valle-Cabrera

Leveraging the innovative performance of human capital through HRM and social capital in Spanish firms

Literature on Intellectual Capital provides interesting arguments about the key role of social and human capital, not only separately but also jointly, for innovation activities. Thus, given the acknowledged importance of these variables, this article studies (1) the direct relationship between social and human capital and innovative performance, (2) the links between these two components of intellectual capital, as well as the possible mediating role of human capital, (3) the effect of particular human resource management (HRM) practices (selection procedures, development programmes, empowerment and use of incentives on compensation) on social and human capital, and (4) the influence of innovative performance on firm performance. In our study, we define a population of firms in the most innovative Spanish sectors for an empirical test of this model, focusing on their R&D departments. Using data taken from 85 firms and applying Structural Equation Models, we have tested the hypotheses and obtained interesting results. It is the uniqueness of human capital, and not its value, which has a direct and positive effect on firm innovativeness. Such uniqueness, in turn, is enhanced through social capital and HRM practices such as empowerment and employee selection based on learning potential and interpersonal abilities. Social capital does not have, per se, a direct influence on innovation, but it indirectly does through human capital. Social capital, in turn, can be enhanced by the selection of individuals with learning potential and interpersonal skills, as well as by their involvement in decision-making processes. Finally, innovation improves firm performance.

The relationship between top management teams and innovative capacity in companies

Purpose – The aim of this research is two‐fold: to examine the effects of certain characteristics of top management teams (TMTs) on innovative performance in their companies; and to determine if this influence is direct or if it is influenced by other factors, such as the existence of strategic consensus in the team.Design/methodology/approach – The research is developed using Upper Echelon Theory. This study was conducted with a sample of 100 companies from innovative sectors. Different regression analysis were undertaken in order to test the established hypotheses.Findings – Three main conclusions can be drawn from this research. First, it cannot be stated that all types of diversity related to TMT activity or work have a positive effect on innovation in companies. In this way, diversity in TMT tenure appears to have a negative influence. Second, the incidence of diversity on innovation cannot be direct in all cases. Therefore, functional diversity has a positive effect on innovation, but always when th...

Reconciling institutional theory with organizational theories

Purpose – The aim of the paper is to review and compare traditional and new institutional postulates in order to address some of the criticism that this theory has received.Design/methodology/approach – Throughout this paper, five interesting paradoxes are presented in management contexts of change, the creation of competitive advantages, and organizational behaviour.Findings – Light is shed on the integration efforts that seek to combine institutional theory with transaction cost theory, the resource‐based view of the firm, and the resource dependence theory.Originality/value – The paper reviews the Oliver contribution work done around neoinstitutional theory. The paper offers a different view of organizational change, the creation of competitive advantage, and organizational behaviour.

Intangible resources and strategic orientation of companies: An analysis in the Spanish context

Abstract To obtain a sustainable competitive advantage, companies must analyze the resources and capacities they possess in order to select strategies likely to offer the best returns. Therefore, the consistency that exists between a companys set of resources and capacities and its strategic orientation has constituted a fundamental subject of study in strategic management [Adm. Sci. Q. 25 (1980) 317; Strategic Manage. J. 6 (1985) 273; J. Manage. Stud. 23 (4) (1986) 401]. However, it has been argued in the literature that the companys achievement of a sustainable competitive advantage depends not only on the resources and capabilities that constitute its competitive basis, nor on the consistency of these with its strategy, but also on the degree of coincidence or overlap between its resources and the set of strategic industrial factors (SIFs) that are critical for success in its markets [Strategic Manage. J. 14 (1993) 33; Barney, J. Integrating organizational behavior and strategy formulation research: a resource based analysis. In: Shrivastava P., Huff A., Dutton J., editors. Advances in Strategic Management, vol. 8. Greenwich, CT: JAI Press, 1992. pp. 39–62]. From the starting point of these theoretical considerations, we have defined three hypotheses aimed at analyzing the linkage between the resources and capabilities possessed by companies and their strategic orientation, and at determining the influence exercised by competitive market factors on the choice of a particular strategy. For the empirical testing of these hypotheses, we took a sample of 130 out of the 500 largest Spanish companies, subjecting the data obtained to various techniques of multivariant analysis.

Employment Relationships and Firm Innovation: The Double Role of Human Capital

We examine how employment relationships and human capital influence innovation in a sample of Spanish firms. Previous research has indicated that human capital directly affects innovation, but few studies have considered human capital as a variable that mediates or moderates the effects of other variables on innovation. We tested our hypotheses using a sample of 150 innovative Spanish firms and confirmed that, while human capital favours innovations, employment relationships are not directly associated with innovation unless they take human capital into account. Specifically, our analyses suggest that human capital mediates the relationship between a mutual investment employment relationship and innovation, which is characterized by high levels of incentives and expectations. However, we also found that human capital plays a moderating role when organizations develop an employment relationship characterized by low investments in personnel but high expectations from their work (the underinvestment model). We discuss the theoretical and practical implications of these results.

How symbolic remuneration contributes to the legitimacy of the company: An institutional explanation

This research analyzes whether variable compensation is designed as an economically rational incentive to increase organizational performance, or whether it also responds to other factors such as the search for legitimacy. A case study demonstrates how the design of the variable compensation system, at both managerial and lower levels, takes into account the companys adoption of popular management practices that increase its legitimacy but not necessarily its performance.The results show that,in the design of their compensation policies, organizations do not always seek financial objectives, as agency theory maintains, but often have other social objectives such as the search for legitimacy, as institutional theory suggests. The management of incentives not only is used to align the interests of principal and agent, but also has a symbolic character, insofar as it signals that the company belongs to a particular social context.

Identifying the variables associated with types of innovation, radical or incremental: strategic flexibility, organisation and context

There is a broad area of research that focuses on organisational factors that promote innovation. However, studies on the subject of the variables associated with the type of innovation, radical or incremental, are still scarce. We have made a theoretical revision concerning the possible connections between several contextual, strategic and organisational characteristics and the kinds of innovation concerned. Our review of the literature allows us to formulate a set of propositions about the nature of these relationships. Our field study of some 124 Spanish companies supports most of our propositions.

Career development and individuals with physical disabilities

Purpose – Few studies have focussed on the situation of employees with physical disabilities from the perspective of human resources management – in particular on the career development expectations of this group. The purpose of this paper is to meet this need by focussing on individuals with physical disabilities in Andalusia (Spain). It analyzes three key aspects: whether the perception of discrimination is related to the perception of inequity due to their disabilities, with this relationship being moderated by gender; whether these perceptions of inequality and discrimination lead to feelings of dissatisfaction with the employing organization; and whether the perception of discrimination mediates the relationship between perceived inequity and job dissatisfaction. Design/methodology/approach – Using the theoretical framework of organizational justice, regression analysis is applied to test the hypotheses in a population of 459 employed people with physical disabilities. Findings – The results show tha...

A contingent approach to the role of human capital and competencies on firm strategy

Employees play a relevant role in firm competitiveness due to their personal competencies and the human capital they constitute for the organisation. The objective of this paper is to assess whether different strategic contexts condition the emergence of different employees competencies. Moreover, accordingly with the strategy chosen, we analyse to what extent these competencies explain the differences in terms of value and uniqueness of the human capital. A set of proposed hypotheses is tested by means of structural equation models considering a sample of manufacturing firms. Results support the finding that prospectors favour proactive and customer-oriented competencies, while defenders foment competencies much more results-oriented. We also observe that the competency of customer orientation explains the value of human capital in prospectors, whilst this human capital dimension is explained by means of results oriented competencies in defender firms. Finally, regarding the uniqueness of human capital, it is explained by proactive competencies in prospectors but we do not find any significant result for defenders.

How do employment relationships enhance firm innovation? The role of human and social capital

Abstract Aiming to explore the effect of human resource management on innovation, this study examined how employment relationships (ER), human capital and social capital work together in influencing innovation in a sample of Spanish firms. We defined an indirect effects model in which both human and social capital mediate between ERs and innovation. We also expected that social capital would enhance human capital. Tests on a sample of 160 innovative Spanish firms confirmed that ERs are not directly associated with innovation. Nevertheless, there is an indirect effect of the mutual investment employment model on innovation through human and social capital. Finally, we observed a positive effect of social capital on human capital.