Purpose. Considering the distressingly low rate of success in introducing radical new products, the purpose of this paper is to reinforce the importance of taking human resources beyond administrative activity leading to stronger innovation performance and the greater use of its people. In particular, this paper highlights three persistent fallacies in human resource practices: need for creativity; efficiency of bottom-up efforts; and monetary incentives for product innovations and to learn from innovative organizations about how to deal with these fallacies.
Design/methodology/approach. This paper details the correlation between culture, confidence, support mechanisms through HR, and innovation by reviewing innovation cases in high-performing organizations. Findings Problem definition, pragmatism and leadership represent critical innovation determinants. As a strategic partner HR can offer support to tackle the three described fallacies of product innovations.
Originality/value. This paper suggests a practical means for helping HR professionals to better understand how some simple organizational rules can effectively build innovation capabilities.
Purpose. Experience suggests that a loss of trust may occur on both sides of the merger and acquisition (M&A) equation – acquirer and acquiree – though the latter is more generally considered the most affected. The purpose of this paper is to explore how a loss of trust during the M&A process in family firms can be avoided. An acquisition potentially triggers a loss of trust in the workplace and, as a result, a loss of productivity thereby causing the merged business to totter. Moreover, trust in a firm’s owner tends to be a key driver in merging family firms.
Design/methodology/approach. The authors investigated an expanding German family firm that recently acquired other family firms. They conducted in-depth interviews on all hierarchical levels in both the acquiring and the acquired firm. These cases are taken from a wider study of acquiring family firms completed in 2019.
Findings. Value congruence, integrity and openness are found to enhance trust during M&As, in particular, if the new owner of a merged enterprise is also a family entrepreneur. Under certain circumstances, the trust of employees in the acquired firm’s previous owner can be transferred to the new owner.
Originality/value. This study explores how specific circumstances of family firms impacts organizational trust in M&A processes. The developed framework helps family firms to use characteristics of their specific nature as an asset to maintain their employees’ organizational trust before, during and even after M&As.