Firm-level human resource management and innovation activities in production networks: a case study of Lao handicraft firms

This study examines the organizational aspects of industrialdevelopment in Laos, with a focus on how human resourcesinteract with production and innovation activities at the firm level. Relative to that seen in other industries, for handicraft firms,human capital plays a more important role in new-productdevelopment and in various interaction processes. Therefore, thisstudy leverages both theory and data from face-to-face interviews,while considering three selected handicraft firms from variousstudy perspectives. Both parts of the analysis shed light on theinformal and formal paths that firms take to generate innovationand achieve new-product development and changes. The studylooks at the impact of other factors on firm-level innovation byexamining both the internal and external factors that lead firms todiversify their product offerings, upgrade their processes, transferknowledge and access global production networks. Finally, thestudy provides in-depth analysis of the nature of productdevelopment ideas, and offers both concrete conclusions andgeneral recommendations.