Numerical labor flexibility and innovation outcomes of start-up firms: A panel data analysis

Abstract

Using a panel data set based on repeated questionnaire surveys in Japan, this study examines the effects of numerical labor flexibility on innovation outcomes of start-up firms, a topic that has not been well examined in the literature. Using a random-effects probit model, the estimation results indicate that the use of temporary employees significantly increases the probability of product innovation. In addition, numerical flexibility, measured as external labor turnover of regular employees, initially increases and then decreases the probability of patent application. The implications of our findings are discussed.

The relationship between R&D, the absorptive capacity of knowledge, human resource flexibility and innovation: Mediator effects on industrial firms

“…The nonsignificant mediator effect of temporary employment is also relevant by itself. Contrary to other scholars (e.g., Beugelsdijk, 2008 , Franceschi and Mariani, 2016 , Grinza and Quatraro, 2019 , Kato and Zhou, 2018 , Michie and Sheehan, 2005 ) that found a negative association between temporary employment and innovation with some limitations, our research explores the mediator effect. Mediator effects are closer to causal relationships than associative measures such as correlations ( Hayes, 2018 , Pieters, 2017 ).…”

“…For instance, new product development teams perform worse when there are poor labor relations. As a consequence, several authors (e.g., Beugelsdijk, 2008 , Franceschi and Mariani, 2016 , Kato and Zhou, 2018 , Martínez-Sánchez et al, 2011 ) find a negative relationship between the use of temporary employees and the firm’s innovation performance. Training, recruitment, and hiring costs are lower for temporary than for permanent core employees, and firms can manage knowledge accordingly.…”

How does strategic flexibility affect bricolage: The moderating role of environmental turbulence

“…For instance, strategic flexibility helps Thai firms manage the economic crisis [29], and firms enter a new market in the US airline industry [18]. It is essential to develop the capabilities to satisfy the market demand, such as labor flexibility [19], supply chain flexibility [30], and manufacturing flexibility [31].…”

“…Overall, this research makes a significant contribution to the existing studies by theoretically and empirically, revealing the influencing mechanism linking strategic flexibility and product innovation in the turbulent environment. The majority of prior studies on the outcomes of strategic flexibility focus on the market entry [18], innovation [7,11,19], firm performance [2,10,20], energy efficiency [21] and competitive advantage [4,9]. We complement the prior literature by exploring the new impact of strategic flexibility on the entrepreneurial behavior-bricolage.…”

Innovation in ergonomics: a survey in the agribusiness sector of Brazil

“…Organisations increasingly recognise their employees not only as human resources but also as talents essential to business development. The technological advancement and the continuous changes of the market demand that companies invest more and more, and even if they mix humans and machines (Zink et al, 2008), the human being is (or should be) the differential with distinct capacities and competences for the organisation, which may be the key to the success of innovations (Calantone et al, 2010;Kato and Zhou, 2018;Chapman and Hewitt-Dundas, 2018).…”