Cardiff University | Prifysgol Caerdydd ORCA
Online Research @ Cardiff 
WelshClear Cookie - decide language by browser settings

Are employee-friendly workplaces conducive to innovation?

Chen, Jie ORCID:, Leung, Woon Sau ORCID: and Evans, Kevin P. ORCID: 2016. Are employee-friendly workplaces conducive to innovation? Journal of Corporate Finance 40 , pp. 61-79. 10.1016/j.jcorpfin.2016.07.011

[thumbnail of 22072016_Manuscript+++.pdf]
PDF - Accepted Post-Print Version
Available under License Creative Commons Attribution Non-commercial No Derivatives.

Download (1MB) | Preview


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: 06 Nov 2023 23:23

Citation Data

Cited 70 times in Scopus. View in Scopus. Powered By Scopus® Data

Actions (repository staff only)

Edit Item Edit Item


Downloads per month over past year

View more statistics