Questioning the human resources management of an SME oriented towards frugal innovation: a review

Abstract

In recent years, a significant literature has developed around HRM in small and medium-sized enterprises (SMEs) oriented towards innovation. On the one hand, we question the HRM practices likely to foster innovation and on the other hand, the way in which innovation transforms HRM practices at the heart of these SMEs inclined towards innovation. However, it is clear that all the work has so far focused on innovative technological companies, ignoring companies inclined towards frugal innovation. However, it turns out that these two types of companies do not share the same characteristics. This requires reflection on the way in which SMEs inclined towards frugal innovation manage human resources to support their innovation dynamics. By proceeding with a narrative literature review, we first presented the state of knowledge on the link between HRM and innovation in SMEs. Then, we discussed specifying the contours of SMEs inclined towards frugal innovation. Based on the characteristics of frugal innovation, several lines of research are proposed. This research work thus offers several future perspectives with regard to the literature on HRM and innovation. The main limitation of this research concerns its theoretical rather than empirical nature. Nevertheless, the article offers real avenues for future researchers who will be able to investigate SMEs tending towards frugal innovation.

Key Words: HRM, innovation, frugal innovation, SMEs

JEL Classification: O15, O32

Paper type: Theoretical Research