Journal of Corporate Finance Vol. 40 2016
Are employee-friendly workplaces conducive to innovation?
open access
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.
- DOI
- 10.1016/j.jcorpfin.2016.07.011
- Volume
- 40
- Pages
- 61-79
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref