Are employee-friendly workplaces conducive to innovation?
Are employee-friendly workplaces conducive to innovation?
We find strong evidence that firms with employee-friendly workplaces achieve greater innovative success, particularly in industries where innovation is more difficult to achieve. Furthermore, employee-friendly firms were also more inclined to sustain R&D investment during the recent crisis. These findings are consistent with the view that an employee-friendly workplace helps to develop tolerance for failure, which encourages engagement in innovation. We find no support for alternative explanations, such as employee-friendly workplaces helping to attract and retain talented employees and reducing career concerns of executives, which could nurture innovation.
employee-friendly workplace, employee relations, employee satisfaction, innovation
61-79
Chen, Jie
7181526d-ec25-480e-a35e-37bf4616e131
Leung, Woon Sau
73a8bf54-6035-4f11-a9ec-74272abbacb5
Evans, Kevin P.
5a8ae844-c282-45fc-9def-dd52db4a8eb1
27 July 2016
Chen, Jie
7181526d-ec25-480e-a35e-37bf4616e131
Leung, Woon Sau
73a8bf54-6035-4f11-a9ec-74272abbacb5
Evans, Kevin P.
5a8ae844-c282-45fc-9def-dd52db4a8eb1
Chen, Jie, Leung, Woon Sau and Evans, Kevin P.
(2016)
Are employee-friendly workplaces conducive to innovation?
Journal of Corporate Finance, 40, .
(doi:10.1016/j.jcorpfin.2016.07.011).
Abstract
We find strong evidence that firms with employee-friendly workplaces achieve greater innovative success, particularly in industries where innovation is more difficult to achieve. Furthermore, employee-friendly firms were also more inclined to sustain R&D investment during the recent crisis. These findings are consistent with the view that an employee-friendly workplace helps to develop tolerance for failure, which encourages engagement in innovation. We find no support for alternative explanations, such as employee-friendly workplaces helping to attract and retain talented employees and reducing career concerns of executives, which could nurture innovation.
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Accepted/In Press date: 22 July 2016
e-pub ahead of print date: 25 July 2016
Published date: 27 July 2016
Keywords:
employee-friendly workplace, employee relations, employee satisfaction, innovation
Identifiers
Local EPrints ID: 484611
URI: http://eprints.soton.ac.uk/id/eprint/484611
ISSN: 0929-1199
PURE UUID: 13b65e3c-4ef0-425d-b942-dafef5883c07
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Date deposited: 17 Nov 2023 18:02
Last modified: 18 Mar 2024 04:17
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Author:
Jie Chen
Author:
Woon Sau Leung
Author:
Kevin P. Evans
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