The Impact of Human Resources Management on Technological Innovation in Jubail Primary Industrial Companies, Kingdom of Saudi Arabia

Abstract

People are important in enhancing industrial firms’ performance and in creating competitive advantage. High quality human resources management enable firms to compete upon the quality of product and services, differentiated products and technological innovation. The importance of effective people management to successful technological innovation capability has been recognized for some time, yet little comparative data is available to explain the complex relationship between human resources management and the technological innovation performance in the GCC countries. The objective of this study is to examine the relationship between human resources management (HRM) and organizations' technological innovation in a large industrial sector in Saudi Arabia. This study was applied on the primary industrial companies in Jubail industrial city. Two surveys were administered to the Jubail primary industrial companies; the first survey used the Organization for Economic Co operation and Development (OECD) questionnaire to measure the companies’ technological innovation , the second survey was designed by the researcher to measure the implementation of HRM system in the same companies. Correlation between HRM and organizations’ technological innovation was measured. Statistical analysis was used to analyze the obtained data. The results showed that the HRM can influence the technological innovation in Jubail primary industrial organizations. It also showed that enhancing technological innovation in industrial organizations is possible through integrating HRM practices , developing HR activities and emphasizing on HR role in the industrial organizations’ strategic planning. The results also revealed that the development of technological abilities of human resources in Jubail primary industrial organizations can positively affect product innovation and reduce the effects of cost and knowledge factors hampering technological innovation in Jubail primary industrial companies. Recognition and Reward system also has a positive effect on process innovation .The methodology used to measure the relationship between HRM and technological innovation is suitable and could be used to enhance technological innovation in industrial organizations. This study recommend that HRM should be considered as an enhancement to the technological innovation in the industrial sector. However , HR indicators must be evaluated as a whole module of practices instead of concentrating on each indicator individually