Flexibility-Oriented HRM Systems, Absorptive Capacity, and Market Responsiveness and Firm Innovativeness

Song Chang, Yaping Gong, Sean A. Way, Liangding Jia

    Research output: Contribution to journalJournal articlepeer-review

    168 Citations (Scopus)

    Abstract

    Although market responsiveness and firm innovativeness are important aspects of firm performance, little is known about which human resource management (HRM) systems foster these performance aspects and how. Building on prior research, we delineate flexibility-oriented human resource management (FHRM) systems in terms of resource- and coordination-flexibility-oriented HRM subsystems. In addition, we draw on organizational learning theory and the concept of absorptive capacity (AC) to articulate the mechanisms through which these systems might influence market responsiveness and firm innovativeness. We develop and validate measures of FHRM systems using a series of four independent samples. Our findings based on a sample of high-technology firms indicate that FHRM systems are positively associated with firm-level potential and realized AC and that potential AC, in turn, is positively associated with market responsiveness and firm innovativeness.
    Original languageEnglish
    Pages (from-to)1924-1951
    Number of pages28
    JournalJournal of Management
    Volume39
    Issue number7
    Early online date27 Nov 2012
    DOIs
    Publication statusPublished - Nov 2013

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