Are employee-friendly workplaces conducive to innovation?

Chen, Jie ORCID: https://orcid.org/0000-0002-4076-7121, Leung, Woon Sau ORCID: https://orcid.org/0000-0002-0389-2126 and Evans, Kevin P. ORCID: https://orcid.org/0000-0001-8854-2629 2016. Are employee-friendly workplaces conducive to innovation? Journal of Corporate Finance 40 , pp. 61-79. 10.1016/j.jcorpfin.2016.07.011

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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.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Subjects:	H Social Sciences > HG Finance
Uncontrolled Keywords:	Employee-friendly workplace, Employee relations, Employee satisfaction, Innovation
Additional Information:	Released with a Creative Commons Attribution Non-Commercial No Derivatives License (CC BY-NC-ND)
Publisher:	Elsevier
ISSN:	0929-1199
Date of First Compliant Deposit:	22 July 2016
Date of Acceptance:	22 July 2016
Last Modified:	01 Dec 2024 03:00
URI:	https://orca.cardiff.ac.uk/id/eprint/93187

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