Research suggests that small and medium-sized enterprises (SMEs) can benefit from network collaboration by enhancing opportunities for innovation. Managing the necessary collaboration to benefit from network participation may however be particularly challenging for SMEs due to their size and their inherent shortage of resources. In this paper, we propose that human resource management (HRM) practices may provide a means by which SMEs can increase their innovation capacity through network collaboration. Following a brief presentation of the relevant literature on networks, and innovation in networks in particular, and HRM, we analyse and evaluate the potential applicability of existing models for supporting innovation in SMEs participating in networks. Finally, we propose several lines of inquiry arising from our analysis that provide directions for future research.
Keywords: innovation, human resource management, HRM, network collaboration, small and medium-sized enterprises, SMEs