Business organizations stand before the necessity of continuously striving to achieve a long–term competitive advantage. Global competition and dynamic changes in the business environment significantly increase the importance of innovation as leverage for success in growth efforts. Can strategic human resource management (SHRM) support an increase in innovation? How? The attempt at answering these questions is the objective of research undertaken by a team of Institute of Labor and Social Studies staff members under the authoress direction. Using research results as a basis, the intention of this article is to provide answers to the following questions: Is there a link between the level and dynamics of innovation and the alignment of company practice with HRM strategy as well as the company's overall strategy? Is the level of innovation in the organization dependent on the HRM model applied -HIWP concept or the HPWS)?
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