Title: Knowledge complementarities: human capital management and R&D investment in high-technology firms
Authors: Benjamin A. Campbell; Preeta M. Banerjee
Addresses: Max M. Fisher College of Business, The Ohio State University, 2100 Neil Avenue, Columbus, OH 43210, USA ' Brandeis International Business School, Brandeis University, 415 South St., Waltham, MA 02454, USA
Abstract: This paper explores complementarities between human capital management strategies and Research and Development (R&D) strategies in high-technology firms. Using data on a large sample of electronics firms in seven states from an employer-employee matched dataset, we examine the relationship between firm-level R&D and firms' human capital strategies. Our results indicate that firms with high R&D investment are more likely to implement externally focused human capital strategies, while firms with low R&D investment are more likely to implement internally focused human capital strategies. Further, firms that adopt both high R&D investment and an externally focused human capital management strategy show higher productivity than comparable firms that implement an internally focused strategy. Our findings provide evidence of complementarities between firm R&D and the absorption of knowledge embedded in externally sourced individual human capital.
Keywords: knowledge complementarities; human capital management; research and development; high technology; high tech firms; linked employer-employee data; strategic change management; R&D investment.
International Journal of Strategic Change Management, 2012 Vol.4 No.3/4, pp.335 - 355
Received: 08 May 2021
Accepted: 12 May 2021
Published online: 02 Feb 2013 *