This study investigates empirically, from the perspectives of rational choice and institutional iso-morphism, the factors that has determined the adoption of innovative HR practices in Korea after the recent economic crisis. The hypotheses based on th...
This study investigates empirically, from the perspectives of rational choice and institutional iso-morphism, the factors that has determined the adoption of innovative HR practices in Korea after the recent economic crisis. The hypotheses based on the rational choice perspective are as follows high-road business strategy, the higher competition of product market, and the perceived higher flexibility of labor market will facilitate the adoption of innovative HR practices. On the other hand, the hypotheses based on the institutional iso-morphistic perspective are as follows proximity to public sphere, the higher share by the foreigners, the enhanced role and the size of HR department, an affiliate of a conglomerate, and whether for CEO to get a degree at a foreign university will have a positive effect on the adoption of innovative HR practices. The empirical analysis is based on a survey data of `Change in Environments and HRMs since the Economic Crisis` conducted by Korea Labor Institute in 2000. The results indicate that the overall effects of both rational choice and institutional iso-morphistic variables on HR innovations are significantly positive. Individually, the higher share by the foreigners, the perceived higher flexibility of labor market, and an affiliate of a conglomerate have fairly consistent positive effects on HRM innovations, and that high road strategy partially has a significant positive effect on HRM innovations. Besides, we separate the innovative HR practices into motivation-related and skill-related