The Relationship Study Of Human Resource Practices And Innovation Performance In SMEs

Small and Medium-sized Enterprises(SMEs)have become the most important component of the modern economic system. In China, SMEs have become an important driving force to enhance the economic growth and absorb the main carrier of social employment. The number of SMEs in China accounted for 99.3% of the total number of enterprises. Their output and profits accounted for more than 60% and 40%. In addition, SMEs play a very important role in meeting customers'diverse needs, cultivating entrepreneurial, technical innovation and so on. In order to promote the development of SMEs in China under the increasingly fierce market competition, innovation became an important way to gain competitive advantage. So, we must find a variety of paths leading to the acquisition of innovative performance. SMEs depend heavily on human resources, so SMEs need a systematic, sustainable human resources management system. However, the HRM in the vast majority of SMEs in China is not optimistic: imperfect HRM system, unclear HRM functions, ignoring training, inattention in corporate culture construction and so on.With this background, this study attempts to identify the relationship of the human resource practices and innovation performance of SMEs, and organizational dynamic capabilities play the intermediary between the two effects. Therefore, this study adopts a variety of methods, through interviews and questionnaire to HR managers, R&D managers, administrative and sales staff to acquire the research data. Then the author analyzed the data to explore and study the causal relationship of the human resource practices, organizational dynamic capability and innovation performance.This study through HR strategy planning, personnel training, incentive salary and performance evaluation four aspects to study human resource practices; through the environment recognizing ability, resource integration ability and learning absorptive capability three aspects to research organization dynamic capabilities; through technical innovation performance and management innovation performance to research innovation performance. Through empirical research and analysis get conclusions as follow:First, human resource practices can be divided into high-performance human resources portfolio and low-performance human resources portfolio two categories. It means the enterprises whose all aspects of human resource practices doing well are the high-performance human resources portfolio enterprises. Second, human resource practices have positive impact on innovation performance. It means the innovation performance of the enterprises which own the high-performance human resources portfolio is higher than the enterprises which own the low-performance human resources portfolio. Third, the organizational dynamic capabilities have positive impact on innovation performance. It means improving organizational dynamic capabilities can enhance organizational innovation performance. Fourth, HR practices have a positive impact on the organizational dynamic capabilities. It means that through enhancing the building of human resource management can improve organizational dynamic capabilities. Fifth, dynamic capability is an intermediary in the relationship of human resource practices and innovation performance. It means human resource practices through affecting the organizational dynamic capabilities to impact on innovation performance.Based on the above analyzed results, we presented conclusions of this study as follows: Combination of the reality, the author proposed concrete measures of high-performance human resources portfolio; Human resource practices through a good combination with organizational strategies, adopt appropriate training, performance evaluation and incentive compensation and other means to improve employee performance and then build and enhance the organizational dynamic capabilities; Human resource practices through playing role on employee knowledge, skills and behavior, with accumulation to format organizational process management, then build organizational dynamic capabilities. With the intermediary of the dynamic capabilities, HR practices impact on innovation performance.