Exploring the Relationship between HRM, Creativity Climate and Organisational Performance: Evidence from Ireland

Abstract

The last decade witnessed growing academic evidence suggesting that HR practices are an important predictor of organisational performance. However, the reality is that we know very little about the intermediary mechanisms through which HRM impacts upon performance. If the logic about obtaining sustainable competitive advantage holds, it suggests that we should turn to exploring the role of HRM in fostering the climate of creativity and innovation deemed necessary for competitive success. Drawing on a survey of the top 2,000 performing firms in Ireland, this paper explores these linkages. The findings indicate a significant positive relationship exists between HRM systems, creativity climate and organisational performance outcomes. One HRM practice in particular; communication and involvement was found to be particularly significant in creating a climate of creativity. The paper therefore serves as a useful first step in charting a course through the explanatory void that exists between HRM and organisational performance