A conceptual framework for innovation: An application to human resource management policies in Australia

This paper explores the concept of innovation within the field of organizational innovation. The aim is to offer a theoretical framework for human resource management policies to extend their goal domains from labour productivity and organizational flexibility, to include innovation. This paper argues for a change in the way strategic organizational and staffing investments are made. Innovation requires the input of innovative individuals. Individuals learn within a frame of reference. In the workplace, individuals learn within the organizational systems of rewards. Organizational innovation depends heavily on this frame of reference for fostering and maintaining the innovative capacities of the firm. However, as habits can lead to innovation, habits can also hinder innovation. This paper identifies this double-edged outcome. It seeks to provide the basis for a theoretical framework that enables a link to be drawn between management, innovation, workplace relations and organizational practices.