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The role of public policy and high-performance work practices in supporting business innovation
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Nana-Cheraa, Rita (2022) The role of public policy and high-performance work practices in supporting business innovation. PhD thesis, University of Warwick.
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Official URL: http://webcat.warwick.ac.uk/record=b3921817~S15
Abstract
Innovation is broadly defined as ‘doing new things’ and has been widely acknowledged as one of the key contributors to sustainable economic growth and national competitiveness. Achieving innovation, particularly among the business sector depends on various factors including innovation policy and Human Resource Management (HRM). Innovation policy is a form of government intervention including measures, programs, grants, and incentives intended to support the creation and diffusion of innovation. Governments use innovation policy to create stimulating systems and favourable environment in which innovation activities are realised.
In an increasingly competitive market, the success and growth of businesses are affected by the ability to extract productive employees’ role behaviours to impact performance. The role of HRM is to use systems of HR practices which enhance employees’ competencies, enable favourable employees’ behaviours, and create opportunities for employees’ participation. The subject of this research project is the effects of HRM practices and innovation policy support, particularly the innovation policy mix, on firms’ performance in terms of R&D investment and innovation outputs. “Policy mix” is a concept which concerns the composition of policies in combinations and how they might interact to mutually shape each other’s effectiveness.
In view of the above, this research first examined the R&D input and innovation output additionalities of public innovation policy mix to contribute to the limited literature on the link between policy mix and innovation, and to extend previous studies relating to policy effect on firm innovation outcomes. Estimation of the impact of policy instruments in isolation may be biased due to hidden effects when other instruments that firms receive are not considered. There is therefore a call on researchers to rather examine the interaction effect of policy instruments in a mix to avoid under – or over - estimation of individual policy effect. Drawing upon information on public R&D supports from the UK innovation survey (UKIS) and coarsened exact matching with propensity score matching techniques, this research demonstrates that a mix of R&D tax incentives and R&D grants leads to both input and output additionalities in treated firms in comparison to untreated firms – confirming the complementary effect perspective, which suggests that public support can induce beneficiary firms to invest more efforts into innovative activities and/or experience higher innovation performance than would otherwise in the absence of the support. The results are consistent along dimension of firms’ size, productivity, industry, and technology and knowledge intensity.
Secondly, based on the Ability-Motivation-Opportunity (AMO) framework and a novel data match between the UKIS and the UK Employer Skills Survey, this thesis delineated three HRM systems to extend the literature on our understanding of the relationship between HRM and performance, and thus contributes to the limited literature on the causal impact of HRM systems on firm innovation. The findings evidence different components of HRM systems have unique and heterogeneous impact contingent on the kind of innovation, and the type of firm along dimensions of size and industry.
Item Type: | Thesis (PhD) | ||||
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Subjects: | H Social Sciences > HF Commerce | ||||
Library of Congress Subject Headings (LCSH): | Business enterprises, Personnel management -- Political aspects, Business enterprises -- Political aspects, Political planning -- Economic aspects | ||||
Official Date: | November 2022 | ||||
Dates: |
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Institution: | University of Warwick | ||||
Theses Department: | Warwick Business School | ||||
Thesis Type: | PhD | ||||
Publication Status: | Unpublished | ||||
Supervisor(s)/Advisor: | Roper, Stephen ; Mole, Kevin | ||||
Sponsors: | Warwick Business School | ||||
Extent: | 160 pages | ||||
Language: | eng |
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