Human Resource Management and Innovation Strategies: A French Study based on the REPONSE 2011 Database

This article deals with the relationship between corporate strategy and human resource management (HRM) practices in France. It highlights that firms having innovation strategies differ from other companies, because they have different HRM practices. We adopt King and Anderson’s definition of innovation (2002, as
quoted by Lapointe et al., 2003) as meaning the introduction of a new practice, a new procedure, or a new process, at the local level, with the aim of improving the economic and social performance of the firm. We also integrate Klein and Harrisson’s notion of social innovation (2006) in order to focus on the multidimensional aspect of the concept.

Based on a rigorous literature review, we put forward a research model based on five major hypotheses concerning employee control/autonomy, training, remuneration, social climate and negotiation with trade unions. To test this model, we rely on the French public database called REPONSE 2011 from the French Ministry of Employment (N= 3,601 respondents).

We show that innovative companies are very different from others in terms of HRM. In particular, these companies have more individualized pay systems, more general objectives, and have less control over their employees (they give more autonomy at work). Innovative companies also develop more training and, furthermore, are used to discussing and negotiating more than other firms. Conversely, no significant
link is reached between social climate and strategy.

Keywords: strategy, human resource management (HRM), negotiation, remuneration, autonomy.