HUMAN RESOURCE MANAGEMENT PRACTICES AND INNOVATION PERFORMANCE AMONG THE EMPLOYEES IN SELECTED BREWERIES IN EDO AND OSUN STATES, NIGERIA

Abstract

Human Resource Management (HRM) practice is one of the determinants of innovation capability and performance among employees in organisations. Most firms considered research, development and technology as requirements’ for Innovation Performance (IP). It is evident from the literature that HRM practices nurture employees’ creativity and promote innovative-work environment, but its influence on innovation capabilities and performance among employees received less attention. This study, was designed to examine the influence of HRM practices (autonomy, knowledge management, motivation and training) on IP among employees in selected breweries in Edo and Osun States, Nigeria.

Social Exchange Theory and Componential Theory of Creativity and Innovation provided the framework. Research design was cross-sectional. A multi-stage sampling consisting of purposive, stratified and convenience sampling were used to select firms and respondents. Yamane’s (1967) method was used to select 361 participants from International Breweries Plc (IBP) - 231, and Guinness Nigeria Plc (GNP) - 130. A semi-structured questionnaire was used to elicit information on socio-demographic characteristics, predominant HRM practices (Training, Motivation, Autonomy, Knowledge Management), levels of innovation performance (LIP), employees’ level of awareness (ELA), effect of HRM practices on IP, challenges and benefits associated with IP. Twenty-four In-depth Interviews were conducted among departmental heads, while six key informant interviews were conducted with senior managers in charge of production, brewing and human resources. The LIP (new/improved products, processes and administrative procedures) were measured using Bessant’s scale, categorized as passive (very-weak) 1.00-1.99, reactive (weak) 2.00-2.99, strategic (strong) 3.00-3.99 and creative (very-strong) 4.00-4.99. The ELA was measured using 3-point likert-scale with 24-item categorised as low-awareness (≤36), moderate-awareness (37-48) and high-awareness (≥49). Quantitative data were analysed using descriptive statistics and linear regression at p≤ 0.05. Qualitative data were content analysed.

Respondents’ age was 30±3.59 years, 71.3% were male, 66.1% were married and 42.7% had Bachelor’s degree. Many from IBP (43.5%) and GNP (46.4%) opined that training and development were the predominant HRM practices. The LIP was strategic in IBP (3.91) and GNP (3.73) indicating strong innovation performance. Employees’ Level of Awareness on the influence of HRM practices on Innovation Performance were high in IBP (65.15) and GNP (66.29). Knowledge management influenced team innovation in IBP (β=0.151) and idea generation in GNP (β=0.143). Training influenced employees’ ability to develop new product in IBP (β=0.189) and GNP (β=0.225), while autonomy had effect on new product in IBP (β=0.262) and GNP (β=0.188). Motivation had positive effect on employees’ inner drive to contribute to IP in IBP (β=0.337) and GNP (β=0.161). Majority of respondents from IBP (90.6%) and GNP (92.1%) affirmed insufficient funds and low management support as factors undermining IP. Respondents from IBP (59.7%) and GNP (84.3%) affirmed that human resource management practices contribute to new product development. The HRM practices enhanced employees’ capabilities to foster IP. Intrinsic motivation served as employees’ source of support and encouragement for better IP.

Insufficient funds and lack of support from management influenced employees’ innovation performance in Breweries in Edo and Osun States, Nigeria.