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Purpose

This study aims to analyse the relationship between innovation and human resource management (HRM) from an empirical perspective, attempting to establish whether innovation determines the firm's HRM or conversely HRM influences the innovation level of the company

Design/methodology/approach

Literature is reviewed from both theoretical and empirical perspectives. On the basis of this review, some research hypotheses are formulated. Finally, these hypotheses are empirically tested on a sample of Spanish firms.

Findings

The results provide evidence for both hypotheses and offer more support for Schuler and Jackson's model than for Miles and Snow's model. In accordance with the previous literature, that in order to affect employee behaviour – and consequently promote company objectives – firms must develop a bundle of internally consistent HRM practices. However, what is still unresolved is which HRM practices should be included in that system.

Originality/value

Fills a gap in the literature, particularly in empirical research, with a focus on Spanish firms.

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