Forming A Firm Innovation Strategy Through Commitment-Based Human Resource Management

In this paper, we argue that commitment-based human resource management (CHRM) enables firms to form an innovation strategy, enriching the literature focused on the subordinate role of HRM in a given strategy. In CHRM, employees are hired based on their knowledge, their expertise is developed, and they are empowered to take reasonable risks in the interest of long-term outcomes. These HRM policies, which mediated by innovative work practices, enable firms to realize their strategic intention to engage in innovation. Analyses of time-lagged data from 445 firms support our hypotheses, and implications are discussed.