Are employee-friendly workplaces conducive to innovation?

By Jie Chen, Woon Sau Leung, Kevin P. Evans. 2016

118 citations recorded by the source corpus.

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.

Subfields: Accounting, Finance, Safety Research

View Paper: https://www.semanticscholar.org/paper/8cb338dd8b7199dc6426950cdf555e0c053671a9

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  1. Federica Rosso
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  5. I. Pigliautile
  6. V. L. Castaldo

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