Could HRM support organizational innovation?

Nowadays, it has become clear that the capacity of organizations to innovate and manage their human resources can be sources of competitive advantage. Recently, literature also asserts a positive relationship between human resource management and innovation. However, very little empirical research has specifically addressed those relationships. Using structural equations modelling with data collected from 173 Spanish firms, this study analyses them. Our findings show that innovation contributes positively to business performance and that human resource management enhances innovation. Implications for both academics and managers as well as future research lines are discussed.