Abstract
This study untangles the social processes and inter-firm mechanisms underlying human resource management (HRM) knowledge networks. The research questions serve to advance understanding of why HRM knowledge flows between firms under contractual relationships and in the absence of formal relationships. The study analyzes data from a complete network of 51 high-technology firms located in a science and technology park to report the structural properties and relational dimensions of inter-firm flow of HRM knowledge. The results from this social network analysis show that the firms in the study actively engage in the sharing of HRM knowledge. Specifically, the results not only indicate the preeminence of formal ties but also of relational factors relating to firm legitimacy, prestige, and collaborative interaction. Participation in inter-firm knowledge networks appears to be an effective tool for obtaining HRM knowledge as well as for enhancing legitimacy and prestige between firms and developing trust and reciprocity within collaborative relationships.
1. Introduction
In order to succeed, firms not only need to channel resources into developing or refining ways of managing their employees but also need to learn from each other, acquiring other firms' best practices in managing people and adapting those best practices to their specific organizational requirements (Kang, Morris, & Snell, 2007). Building up knowledge of how to manage employees is a critical source of competitive advantage for firms (Grant, 1996). Indeed, previous research on human resource management (HRM) shows that firms that manage their employees according to a specific set of HR policies and practices obtain higher financial returns and long-term economic benefits that guarantee superior organizational performance (Huselid, Jackson, & Schuler, 1997). Despite the appeal of this argument, scholars engaged in HRM research focus primarily on HRM decisions at the intra-organizational level and on the idea that HR practices must fit in with organizational strategy in order to produce performance enhancements (Delery & Doty, 1996). Research incorporating HRM into inter-firm relationships (Brass, 1995; Kinnie, Swart, & Purcell, 2005; Mirvis, 1997) is less substantive.
6. Conclusion
If inter-firm networks are crucial to knowledge flow, and arguably to organizational learning and competitiveness, this study focuses on why firms develop collaborative relationships to increase their access to HRM knowledge. To date, little is known about the successful management of HRM knowledge sharing in inter-firm networks, or about the dyadic relationships between firms that potentially enhance the level of collaboration required to prompt HRM knowledge sharing. One reason that may account for the absence of empirical research is that the flow of organizational and managerial knowledge occurs more often in informal, cooperative ways, whereas most research tends to look at formal, instrumental, agency-driven exchanges of knowledge (e.g., technological knowledge). Therefore, this analysis is especially relevant for the successful management of knowledge flows, in particular with respect to the levels of collaboration and trust that are required for independent firms to actually exchange HRM knowledge.
