The influence of human resource management practices on learning and innovation in developing countries: pharmaceutical firms in Mexico

Fernando Santiago
UNU-MERIT and UNIDO

Ludovico Alcorta
UNIDO

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     Last modified: December 30, 2008

Abstract
A growing stream of literature attempts to understand the influence of human resource management practices on learning and innovation at the firm level. Notwithstanding progress so far, development of a comprehensive theory on the issues involved is still at an early stage. This paper is a contribution in the context of developing countries. It explores the intermediate processes linking management practices to innovation. More specifically, it looks at a number of practices underpinning learning by individuals involved in innovation. Such practices condition the working environments in which learning strategies adopted by firms take place. Analysis is supported by bivariate probit regression using survey data about pharmaceutical firms in Mexico. Results show that practices such as training, workers’ involvement in decision making and to a lesser extent, remuneration are conducive to learning and innovation.