Responsible Human Resource Management and Organizational Innovation Capability

Megumi Suto () and Hitoshi Takehara ()
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Megumi Suto: Waseda University
Hitoshi Takehara: Waseda University

Chapter Chapter 6 in Stakeholder Engagement and Innovation in Japan, 2025, pp 135-164 from Springer

Abstract: Abstract This chapter investigates the linkage between internal stakeholder engagement, organizational innovation capability, and firm value, focusing on employee non-pecuniary rewards. Employee-oriented CSR in the framework of human resource management (HRM) works on improving employee motivation for creativity and commitment to organizational innovation by providing non-pecuniary rewards. These include equal opportunities (EO) and work quality in the workplace, work-life balance (WLB), and employee welfare. The empirical results demonstrate that non-pecuniary rewards alone and combined with monetary rewards enhance value-based innovation, though non-stakeholder perceptions of employee-oriented CSR negatively moderate this relationship. Employees, as social stakeholders, are concerned with their organization's social interaction and reputation. Thus, we also examine the effect of a firm’s environmental initiatives on the employees’ commitment to the organization in increasing social concerns regarding environmental issues. We find that a firm’s environmental-oriented CSR has a positive interactive effect on the relationship between employee-oriented CSR and firm-level innovation. Our findings imply that CSR engagement determines employee attitudes and behaviors directly through CSR-HRM practices and indirectly through organizational social identity. For innovative firms, multi-stakeholder engagement is critical to activate employee motivation to be creative.

Date: 2025
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DOI: 10.1007/978-981-96-0316-9_6

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