| This study follows-up earlier work on firm level effects of human resource innovations. Case studies of two paper mills of similar size, using similar technology and producing similar product for the same market, but with fundamentally different human resource practices shed light on which innovative human resource practices are in use in the paper industry and pros and cons associated with their implementation. The case studies helped to establish the framework for the quantitative study, aiding in construct identification, definition, and measurement, and in the interpretation of the data. Quantitative study data were collected through site visits to paper mills to obtain human resource data. Human resource data were collected in three conceptual areas: knowledge and skill variable data (selection, training and communication), structure variable data (hierarchical levels, use of teams, decreased status differentials and the use of broad-based jobs), and motivation variable data (compensation and participative efforts). The dependent variable against which the human resource data were tested was paper breaks, a paper industry measure of quality. Dependent variable data were obtained from a large printing company. Logit and negative binomial regression models were used in the analysis and produced superior results over an ordinary least squares model due to non-linear relationships and the use of count data. The data analysis indicated that innovative selection techniques, shop floor communication using the PC, fewer hierarchical levels, broad-based jobs structures, increased motivation through the use of skill-based pay and high levels of participation, and decreased pay differentials between shop floor workers were all found to have statistically significant effects on the number of paper breaks occurring during printing. Effect size for motivation through participation and skill-based compensation and the use of decreased pay differentials were found to be especially large. Both management change and the paper market affected the results. |