5. Discussion and conclusions
Intense competition in global markets encourages firms and territories to create value through innovation. The creation of new products and solutions, however, relies not only on organizational capabilities, but also on skilled, creative human resources. Accordingly, HRM practices adopted by firms have traditionally been linked to innovation both directly and indirectly. This study fills a major research gap by answering recent calls for nuanced studies that examine the mechanisms through which HRM systems foster innovation. We contribute to opening this black box by simultaneously analyzing the mediating effects of firm- and context-related factors using five separate operationalizations of innovation. Based on analysis of a sample of 139 firms across three industrial clusters, our results show the positive relationship between the adoption of HRM practices and a firm’s innovation performance. As expected, however, the effect is essentially a mediated effect. We placed HRM systems at the beginning of the process, considering HRM to be a main antecedent of innovation. Strategic vision, local networks, enterprise systems, and type of cluster mediated the relationship between HRM systems and innovation. The results confirm that all four variables mediate the effect of HRM systems on innovation. The relevance of the indirect effect, however, was observed to be contingent on the type of innovation. This finding highlights the complexity of the effect of HRM practices on innovation and the need for a refined approach when designing either firm-level strategies or innovation policies. The following paragraphs highlight our key findings and their implications.