This article reviews the growing body of empirical evidence (N = 35)
on the impact of HRM on innovation that has been published during the
past 25 years (1990–2015). Our most definitive finding concerns the
impact of bundled HRM practices, which can be firmly linked to
innovation. The role of high-commitment practice bundles appears
particularly important. Studies on the various individual practices
indicate that practices that foster employee commitment, loyalty,
learning and intrinsic motivation are conducive to innovation. Some
evidence points to the role of macro- and micro-level moderators setting
boundary conditions (e.g. industry and strategy) for the HRM–innovation
relationship and to mediators, such as creativity and knowledge
management, as explanatory mechanisms as to why HRM impacts innovation.
We noted a number of insufficiently covered areas that call for further
research. We present four specific recommendations: (1) different phases
of the innovation process deserve greater attention; (2) the invention
of radical innovation warrants further investigation; (3) measurement of
innovation and HRM should be more consistent; and (4) the theoretical
underpinnings of the relationship between HRM and innovation should be
strengthened. We conclude by reflecting the ‘black box’ stage between
HRM and innovation through the AMO framework.