Centre for Organizational Renewal and Evolution (CORE)
Collaboration in innovation networks is particularly important for small and medium enterprises (SMEs) to remain competitive in a rapidly changing environment. Collaboration may however be particularly challenging for SMEs, due to their size and their inherent shortage of resources. In this paper, we propose that Human Resource Management (HRM) may provide a means by which SMEs can increase their capacity for deriving value from innovation networks, which is a rather unexplored area of the literature. To begin, we present a brief review of the relevant literature on networks, and innovation in networks in particular, and HRM. We then analyze current models and empirical studies aimed at identifying specific HRM practices that support innovation and evaluate their applicability to SMEs in innovation networks. We argue that the HRM implications for network collaboration of SMEs are considerable, and we offer a number of both practical and conceptual considerations relevant to SMEs in innovation networks.