How Can HR Drive Growth?
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How Can HR Drive Growth?

Edited by George Saridakis and Cary L. Cooper

The ten up-to date research reviews that are presented in this book provide new insights into the HR academic literature. The chapters provide clear lessons that can be learnt from, along with strategies, approaches and processes in which HR could be used by both practitioners and policy makers to drive growth.
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Chapter 4: Promoting innovation and entrepreneurship through HR practices

James C. Hayton, Jeffrey S. Hornsby and James Bloodgood


Entrepreneurship is not limited to the domain of individuals and start ups, but is highly relevant to organizations seeking to adapt to complex and turbulent competitive environments. A significant proportion of innovations emerge from within existing organizations, despite the fact that established organizations may suffer from a number of innate disabilities when it comes to promoting entrepreneurial behavior. Established organizations naturally tend to be more bureaucratic, routinized, compelled to serve existing customer needs, blind to new technological developments, and hindered by their own cost structures (e.g. Christensen, 1997). On the other hand, established organizations possess significant resource advantages over new startups; they have capabilities for production, marketing and distribution of their products or services, and possess legitimacy in their strategic fields and among stakeholders, particularly potential customers and suppliers. It has long been noted that organizations differ in their capacity for behaving entrepreneurially (Miller, 1983). These differences have also been related to measures of organizational performance (e.g. Rauch et al., 2009; Zahra, 1996). Besides an established association with various performance metrics such as sales growth and financial success, entrepreneurship within organizations represents a significant outcome in its own right. Corporate entrepreneurship reflects a capacity for adaptive , and often proactive transformation, which aids adjustment to ever changing technological, economic and competitive landscapes.

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