Premium
When the fit between HR practices backfires: Exploring the interaction effects between rewards for and appraisal of knowledge behaviours on innovation
Author(s) -
Andreeva Tatiana,
Vanhala Mika,
Sergeeva Anastasia,
Ritala Paavo,
Kianto Aino
Publication year - 2017
Publication title -
human resource management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.44
H-Index - 77
eISSN - 1748-8583
pISSN - 0954-5395
DOI - 10.1111/1748-8583.12133
Subject(s) - argument (complex analysis) , knowledge management , psychology , corporate governance , business , performance appraisal , economics , management , computer science , biochemistry , chemistry , finance
This paper explores the idea that well‐aligned HR practices may produce varied and even negative effects on innovation performance. To do so, we examine the interaction effect between rewards for and appraisal of knowledge behaviours on radical and incremental innovation outcomes. Drawing on the insights from the strategic HRM literature on the internal fit between HR practices, as well as the developments of the knowledge governance approach, we argue that rewards and appraisal applied together produce a setting that is conducive for deepening existing knowledge bases, but hindering for more distant and diverse knowledge search. Empirical test of these hypotheses using the data from 259 Finnish companies lends partial support for this argument. Intensive usage of appraisal of knowledge behaviours reduces the positive impact that rewards for such behaviours have on radical innovation. At the same time, rewards and appraisal do not intensify each other's effect on incremental innovation.