The role of Intangible Assets in the Relationship between HRM and Innovation: A Theoretical and Empirical Exploration

Abstract

This paper, as far as known, provides a first attempt to explore the role of intellectual capital (IC) and knowledge management (KM) in an integrative way between the relationship of human resource (HR) practices and two types of innovation (radical and incremental). More specifically, the study investigates two sub-components of IC – human capital and organizational social capital. At the same time, four KM channels are discussed, such as knowledge creation, acquisition, transfer and responsiveness.\ud The research is a part of a bigger project financed by the Ministry of Economic Affairs and the province of Overijssel in the Netherlands. The project studies the ‘competencies for innovation’ and is conducted in collaboration with innovative companies in the Eastern part of the Netherlands. \ud An exploratory survey design with qualitative and quantitative data is used for\ud investigating the topic in six companies from industrial and service sector in the region of Twente, the Netherlands. Mostly, the respondents were HR directors. The findings showed that some parts of IC and KM configurations were related to different types of innovation. To make the picture even more complicated, HR practices were sometimes perceived interchangeably with IC and KM by HR directors. Overall, the whole picture about the relationships stays unclear and opens a floor for further research