Managing knowledge through human resource management practices in SMEs

Purpose - The purpose of this paper is to investigate the effect of human resource practices (HRPs) on innovation among Small and Medium Enterprises (SMEs). Particularly, two perspective will be considered. The first studying the importance of complementarities of HRPs in terms of HR systems (HRSs) in pursuing innovation processes in SMEs; the second, focuses on the role that single HRPs might have in affecting innovation. Design/methodology/approach - The hypothesis will be tested through a regression analysis on data collected through an on line questionnaire administered to representatives of a sample of 3223 small and medium sized firms in five different industries in Italy (data gathering is currently ongoing). The analysis was carried out on a sample of 95 SMEs. Originality/value - This paper puts in evidence the HR practices affecting SMEs innovation. This paper aims at contributing to the research concerning HR management and innovation in small and medium firms (SMEs). The paper will contribute to research on SMEs by addressing two major questions, that are: does human resources management enhance effectively innovation in SMEs? And, further: which are the critical human resources practices for SMEs' innovation? Results suggest that the implementation of HRPs is critical for SMEs' innovation processes. Further, difference among HRPs is shown in affecting the process. In this sense it is demonstrated that the managerial practice could play a relevant role despite it has been long disregarded in strategic literature (Kraaijenbrink et al 2010). Practical implications - The paper aims at contribute to the investigation on the ability of SMEs to innovate through HRs. In particular, this article recovers the role of human resource practices to innovate. Results suggest that SMEs should pay more attention to HR practices for innovation achievement since their importance in affecting SMEs performance. Results could be useful giving some point of reflection to SMEs management as well as to policy makers willing to implement local policy for supporting SMEs development.