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Workplace organization and innovation

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  • Cindy Zoghi
  • Robert D. Mohr
  • Peter B. Meyer

Abstract

This study uses panel data on Canadian establishments to explore the relationship between the organization of work - in particular decentralization, information-sharing, and incentive pay schemes - and innovation. Like other studies, ours finds a clear positive link between these factors. However, the data give strong indications that this relationship is not causal. We show that: (1) the correlation between workplace organization and innovation holds for information-sharing but is much weaker for decentralized decision-making or incentive pay programs, (2) controls for unobserved heterogeneity significantly weaken results, and (3) lagged variables give no clear evidence that organizational changes predate innovation.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 43 (2010)
Issue (Month): 2 (May)
Pages: 622-639

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Handle: RePEc:cje:issued:v:43:y:2010:i:2:p:622-639

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Cited by:
  1. Hempell, Thomas & Zwick, Thomas, 2005. "Technology Use, Organisational Flexibility and Innovation: Evidence for Germany," ZEW Discussion Papers 05-57, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Meyer, Jenny, 2008. "The Adoption of New Technologies and the Age Structure of the Workforce," ZEW Discussion Papers 08-045, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  3. Spyros Arvanitis & Euripidis N. Loukis & Vasiliki Diamantopoulou, 2013. "Are ICT, Workplace Organization and Human Capital Relevant for Innovation? A Comparative Study Based on Swiss and Greek Micro Data," KOF Working papers 13-333, KOF Swiss Economic Institute, ETH Zurich.
  4. Spyros Arvanitis & Tobias Stucki & Florian Seliger, 2013. "The Relative Importance of Human Resource Management Practices for a Firm’s Innovation Performance," KOF Working papers 13-341, KOF Swiss Economic Institute, ETH Zurich.
  5. Tor Eriksson & Zhihua Qin & Wenjing Wang, 2014. "Firm-level Innovation Activity, Employee Turnover and HRM Practices – Evidence from Chinese Firms," Economics Working Papers 2014-09, School of Economics and Management, University of Aarhus.

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