Employee Treatment and Firm Innovation

Mao, Connie X.; Weathers, Jamie

doi:10.2139/ssrn.2648588

Cited by 12 publications

(11 citation statements)

References 39 publications

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“…A particular strand of literature has focused on examining the links between incentive systems within firms and employee innovation activities. Although large-scale quantitative evidence is sparse, it appears that performance-based reward systems have a positive influence on the creativity and "innovative behavior" of individual employees (De Jong and Den Hartog (2007); Ederer and Manso (2013); Gibbs, Neckermann, and Siemroth (2017)) and, in some cases, on the firm's overall innovation-related activities and outcomes (Leiblein and Madsen, 2009), including for example its patenting propensity (Chen et al, 2016) and quality (Mao and Weathers, 2019). In addition, human resource management and incentive systems play an important role in explaining performance in general (Bloom and Van Reenen, 2011;Bender et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

Do Innovative Firms Pay Higher Wages?: Micro-Level Evidence from Brazil

Cirera¹,

Neto²

2020

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

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Section: Introductionmentioning

confidence: 99%

Do Innovative Firms Pay Higher Wages?: Micro-Level Evidence from Brazil

Cirera¹,

Neto²

2020

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“…Additionally, socially responsible firms appeal to certain customers and have been found to be associated with superior sales and firm performance (Lev et al, 2010). Socially responsible firms can also attract and retain high-quality employees, which contributes to firm value (Edmans, 2011;Mao & Weathers, 2019). Furthermore, commitment to social and environmental activities can decrease lawsuits and environmental costs (Dhaliwal et al, 2011) and increase investment efficiency and innovation (Cook et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

Powerful CEOs, cash bonus contracts and firm performance

Bachmann

Loyeung

Matolcsy

et al. 2019

Business Fin & Account

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We investigate whether powerful chief executive officers (CEOs) influence the conditions of their cash bonus contracts. Specifically, we examine (i) the association between CEO power and the proportion of ex‐ante cash bonus to base salary (bonus ratio), (ii) the association between CEO power and the relative use of non‐financial to financial performance targets in cash bonus contracts, and (iii) the performance consequences of incorporating non‐financial targets in cash bonus contracts. Results show that powerful CEOs are associated with greater ex‐ante bonus ratios and higher proportions of non‐financial performance targets compared to less powerful CEOs. Furthermore, the use of quantitative and corporate social responsibility (CSR)‐related non‐financial performance targets is positively associated with subsequent firm performance, and the use of undefined non‐financial performance targets is negatively associated with subsequent firm performance. These results are robust to alternative econometric specifications and variable definitions.

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“…For instance, Google’s first core principle of innovation is that “innovation comes from anywhere,” which argues that “innovation is ... everyone’s responsibility. Ideas come from anyone from the very top of the organization to lower ranks and it’s everyone’s responsibility to innovate.” 1 While prior literature recognizes the role of human capital in firm innovation (Chang et al, 2015; Chen et al, 2016; Mao and Weathers, 2019), we examine whether and how the supply of educated workforce affects the quantity and quality of firm’s innovation outputs.…”

Section: Introductionmentioning

confidence: 99%

“…Second, prior studies find that corporate innovation is affected by inventor fixed effects (Liu et al, 2017), employee satisfaction and treatment (Chen et al, 2016; Mao and Weathers, 2019; Ramdani et al, 2021), compensation incentives (Chang et al, 2015), and labor laws (Acharya et al, 2013). This study adds to prior studies by focusing on the education level of local workforce.…”

Section: Introductionmentioning

confidence: 99%

Workforce education and corporate innovation

Liu

2022

Australian Journal of Management

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The average workforce education near firms’ research centers facilitates firms’ matching with innovation talents and acquisition of knowledge. This study documents a positive association between the average education level in the metropolitan statistical areas (MSAs) where firms’ research centers are located and the quantity and quality of innovation outputs. The results are confirmed by controlling for various measures of MSA-level economic, population, and employment conditions, as well as research-center level analyses which control for firm-year fixed effects. We further find that local workforce education is more important for firms that are large, less labor-intensive, in non-high-tech industries and located in low education regions. The evidence highlights the importance of having access to well-educated local workforce for corporate innovation. JEL Classification: G30, J24, O31

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Employee Treatment and Firm Innovation

Cited by 12 publications

References 39 publications

Do Innovative Firms Pay Higher Wages?: Micro-Level Evidence from Brazil

Do Innovative Firms Pay Higher Wages?: Micro-Level Evidence from Brazil

Powerful CEOs, cash bonus contracts and firm performance

Workforce education and corporate innovation

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