Narrow Results

Prior research has shown that the level of communication has an effect on the learning outcomes in R&D alliances and, subsequently, on performance. The level of communication depends on issues such as the systems that enhance knowledge sharing and the factors that deter knowledge flows, such as tacitness of knowledge and (deliberate) barriers set up to limit knowledge transfer. Innovations and value can only be created through sufficiently open knowledge sharing. But on the other hand, too open knowledge sharing might outrun the value gained by innovations if the knowledge lost would leave the knowledge sharing firm vulnerable. Yet, there is still a lack of understanding on which factors are responsible of the level of communication and to what extent. In particular, it has often been forgotten that HRM-related mechanisms are not only functional within firms, but also between firms. Thus, in this study, the HRM-related mechanisms that contribute to both of these areas are examined by using empirical quantitative data gathered from 83 Finnish R&D intensive firms.

In terms of innovation generation and management, creative employees are the most valuable resources in small firms. Thus, knowledge leaking and leaving are the major staff-related risks. Protecting HRM-related knowledge is one effective way of dealing with these challenges, although this is not always acknowledged by academics or by managers. It is particularly valuable in safeguarding the existing background knowledge of the firm, and thus the prerequisites for future innovation. The aim in this study is to shed light on what is a somewhat neglected protection and appropriability mechanism, and thus to enhance understanding of the role of HRM in protecting core company knowledge—especially in SMEs. These issues are explored in a review of the latest literature and a case study of 15 SMEs representing three industries. The theoretical contribution of the study is to introduce and empirically test a typology of five HRM-related knowledge-protection mechanisms: recruitment, education and training on matters of confidentiality, retaining employees, capturing and diffusing knowledge in-house, and monitoring.

Earlier research has put forward the theoretical proposition that R&D employees exhibit different patterns of allegiance — they tend to either develop a unilateral allegiance (to their own firm or to the inter-firm collaboration), a dual low allegiance or a dual high allegiance. It has also been proposed that each particular allegiance type influences these employees' knowledge sharing behaviour. The present paper empirically tests these claims. Analysing original data collected through 50 interviews that took place in 2011 and 2012 in the R&D units of two global firms in Finland, the United States, and China, we confirm that these allegiance patterns exist and there is a relationship between allegiance and knowledge sharing behaviour. We also extend the previous theoretical framework on which the study is based and analyse not only knowledge sharing, but also knowledge protection behaviour.

Maintaining innovation potential means that ideas, and the people generating those ideas, should be at the firms disposal. Furthermore, the firm should be able to capture value from people's ideas. Losing these people therefore poses risks. Managing these risks is challenging, especially without intra-firm consensus on their role. This study examines how and why perceptions of severity and management of risks related to knowledge leaving and knowledge leaking differ across organisational levels and different firm locations. Depending on what types of differences are present, and why similarities and differences emerge, managers can direct their attention to different control or commitment-enhancing practices to address the risk of harmful knowledge loss and imitation. They should do this in a manner that enables them to maintain the prerequisites for future innovation and a creative work environment, while at the same time allowing global coordination and local adaptation.

Although the first look might suggest otherwise, knowledge protection is a complex phenomenon that does not lend itself to easy classification. Discussion easily turns to intellectual property rights (IPRs) such as patents or secrecy, while other aspects such as human resource management (HRM) for knowledge protection is neglected. Yet, innovative firms depend on their knowledgeable employees to generate new innovation, to assist in profiting from them, and maintain the capabilities for later innovative activities. Therefore both reactive and proactive action is needed to mitigate problems with knowledge leaving and leaking. This study addresses the ways in which companies can prepare for knowledge-related risks as early as during employee recruitment. The findings from our case study suggest that somewhat different issues are considered in relation to different types of risks (leaving and leaking), and that while intuition plays a notable role in proactive assessment, a more analytical approach can also be taken.

Innovation and HRM practices are connected, but the nature of these linkages may not be completely understood. Practical examples where knowledge securing practices limit efficiency of creative work, and where rewarding established ways of work prevent new approaches from being tried, suggest that there are challenges. In this study, we examine the relationships between different forms of HRM practices, knowledge sharing and protection (i.e., knowledge activities), and performance outcomes. Our findings from empirical analysis among 150 firms suggest that HRM practices are positively related to subjective overall performance and innovation performance, and that knowledge sharing likewise has such a relationship with performance outcomes. Furthermore, when knowledge sharing is accompanied with HR practices targeted to securing knowledge, innovation performance can be improved. Knowledge securing also comes in play when it is combined with HR practices of personnel compensation and appraisal; in this case subjective performance is diminished. This leads us to suggest that companies might benefit from smart HRM systems.

Innovation and HRM practices are connected, but the nature of these linkages may not be completely understood. Practical examples where knowledge securing practices limit efficiency of creative work, and where rewarding established ways of work prevent new approaches from being tried, suggest that there are challenges. In this study, we examine the relationships between different forms of HRM practices, knowledge sharing and protection (i.e., knowledge activities), and performance outcomes. Our findings from empirical analysis among 150 firms suggest that HRM practices are positively related to subjective overall performance and innovation performance, and that knowledge sharing likewise has such a relationship with performance outcomes. Furthermore, when knowledge sharing is accompanied with HR practices targeted to securing knowledge, innovation performance can be improved. Knowledge securing also comes in play when it is combined with HR practices of personnel compensation and appraisal; in this case subjective performance is diminished. This leads us to suggest that companies might benefit from smart HRM systems.