Be nice to your innovators: Employee treatment and corporate innovation performance

Chen, Chen; Chen, Yangyang; Hsu, Po–Hsuan; Podolski, Edward J.

doi:10.1016/j.jcorpfin.2016.06.001

Cited by 172 publications

(112 citation statements)

References 79 publications

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“…The large impact of human capital on product innovation found by Karlsson and Tavassoli (2016) is absent in rural, as well as urban, 15 results. Availability of employee benefits impacts rural innovation in an almost consistently positive manner, in line with the results of Chen et al (2016), with the largest point estimate associated with patented innovation. T A B L E 4 Results for baseline specification (S1)-rural and urban samples…”

Section: Dotzel and Faggiansupporting

confidence: 72%

The impact of external knowledge sourcing on innovation outcomes in rural and urban businesses in the U.S.

Dotzel

Faggian

2019

Growth and Change

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This paper examines the relationship between external knowledge sourcing and a diverse set of innovation outcomes in rural and urban establishments in the U.S. Existing studies in the broader knowledge management literature principally examine firms in a single industry, overwhelmingly rely on patent data to proxy for innovation, and cannot account for the innovations of businesses in rural American markets. By addressing these limitations using data from the 2014 Rural Establishment Innovation Survey of the USDA's Economic Research Service, this research provides novel insights into how externally acquired knowledge by American establishments may support innovation. Results of the analysis suggest that external knowledge sourcing may specifically promote product, process, and green innovation in U.S. firms. While collective results when external sources of information are divided by industry orientation fail to show that sources outside of a firm's industry play a dominant role in the innovation processes of American establishments in general, findings provide evidence for an outsized impact of these relationships within rural establishments specifically and suggest that external knowledge sourcing from extra‐industry organizations is most critical for promoting successful innovation in rural firms. Results additionally indicate that knowledge sourcing from non‐local organizations may be more important for supporting innovation in rural compared to urban markets.

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Section: Dotzel and Faggiansupporting

confidence: 72%

The impact of external knowledge sourcing on innovation outcomes in rural and urban businesses in the U.S.

Dotzel

Faggian

2019

Growth and Change

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“…More recently, studies have found that employee-friendly practices influence corporate innovation performance. Chen, Chen, Hsu, and Podolski (2016) show that firms with better employee treatment policies generate more and better patents through improving employee satisfaction and teamwork. Similarly, document that firms with employee-friendly workplaces achieve greater innovative success.…”

Section: Employee-friendly Practicesmentioning

confidence: 99%

Employee‐friendly practices, product market competition and firm value

Chang

2018

Business Fin & Account

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In this paper, we examine whether employee‐friendly practices are associated with product market competition, and whether firm value is related to employee‐friendly practices and product market competition. Using a large sample of US firms, we find positive and significant associations between employee friendliness and product market competition, and between firm value and employee friendliness when product market competition is high, consistent with the value creation theory. Both positive relations hold when we account for corporate governance. In addition, using the list of Fortune's ‘100 Best Companies to Work For’ as an alternative measure of employee‐friendly policies, we find firms in more competitive industries are more likely to treat their workers favourably. Furthermore, we find that the market reaction is more positive when firms in more competitive industries are selected for the Fortune list.

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“…We then extend the database to all patents granted to 2014 using the Google Patent database in Chen et al. () and Gao et al. ().…”

mentioning

confidence: 99%

“…The combined database includes detailed patent information for patents granted by the USPTO from 1976 to 2010. We then extend the database to all patents granted to 2014 using the Google Patent database in Chen et al (2016) and Gao et al (2017). We employ an automated name-matching algorithm that matches the name and location of each patent assignee that appears in patents granted in 2011-2014 in the Google Patent database to a pool of names and locations that have appeared as assignees of patents listed in our merged database from 1976 to 2010.…”

mentioning

confidence: 99%

The Real Effects of Real Earnings Management: Evidence from Innovation

Bereskin

Hsu

Rotenberg

2018

Contemporary Accting Res

Self Cite

110

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We examine the consequences of real earnings management from an innovation perspective and investigate the patent output of firms likely to be managing earnings through altering their R&D expenditures. We find that R&D cuts related to earnings management lead to fewer patents, less influential patent output, and lower innovative efficiency compared to other R&D cuts. Our results thus suggest that real earnings management may obstruct firms’ technological progress and highlight the potential costs of managerial manipulation of R&D expenditures to alter reported earnings.

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Be nice to your innovators: Employee treatment and corporate innovation performance

Abstract: for their valuable comments. We also thank Xin Chang and Wenrui Zhang for sharing with us the non-executive stock option data. Po-Hsuan Hsu acknowledges the General Research Fund (GRF) sponsored by the Research Grants Council in Hong Kong (790913). All errors are our own.

Cited by 172 publications

References 79 publications

The impact of external knowledge sourcing on innovation outcomes in rural and urban businesses in the U.S.

The impact of external knowledge sourcing on innovation outcomes in rural and urban businesses in the U.S.

Employee‐friendly practices, product market competition and firm value

The Real Effects of Real Earnings Management: Evidence from Innovation

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