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The Impact of Interorganizational Manpower Flows on the Innovation Process

Author

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  • John E. Ettlie

    (Center for Social and Economic Issues, Industrial Technology Institute, P.O.B. 1485, Ann Arbor, Michigan 48106)

Abstract

In a study of 56 food processing firms, respondents reported on manpower flows that had an important influence on innovation decision making. Positive gain manpower flows appear to be a relatively rare occurrence. Only 23 (41%) of these 56 firms report any significant, innovation-impact, personnel additions, and 15 of these involve management positions. Four propositions were tested that focus on the relationship between manpower flows and innovative outcomes of an organization, i.e., offering new products and incorporating new processes. Moderate support was found for the proposition that net gain manpower flows are more likely to be related to radical as opposed to incremental process adoption. Evidence suggests that there is an inverted "u" shaped relationship between, net manpower flows and innovation outcomes. New blood stimulates innovation up to a point after which there is disruption to the innovation process. Adding too many people at once who all have a significant influence on the process may be unwise. The impact of manpower flows on innovative outcomes appears to be moderated by organization structure and the availability of slack resources for innovating. In particular, net manpower flows were significantly more likely to be positively correlated with the sum of the staged adoption behaviors for the retort pouch in decentralized (p \le 0.05) and complex (p

Suggested Citation

  • John E. Ettlie, 1985. "The Impact of Interorganizational Manpower Flows on the Innovation Process," Management Science, INFORMS, vol. 31(9), pages 1055-1071, September.
    • Handle: RePEc:inm:ormnsc:v:31:y:1985:i:9:p:1055-1071
    DOI: 10.1287/mnsc.31.9.1055
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    Cited by:

    1. Herrera, Liliana & Nieto, Mariano, 2015. "The determinants of firms' PhD recruitment to undertake R&D activities," European Management Journal, Elsevier, vol. 33(2), pages 132-142.
    2. Liis Roosaar & Urmas Varblane & Jaan Masso, 2020. "Productivity Gains From Labour Churning In Economic Crisis: Do Foreign Firms Gain More?," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 125, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    3. Eriksson, Tor & Qin, Zhihua & Wang, Wenjing, 2014. "Firm-level innovation activity, employee turnover and HRM practices — Evidence from Chinese firms," China Economic Review, Elsevier, vol. 30(C), pages 583-597.
    4. Grinza, Elena & Quatraro, Francesco, 2019. "Workers’ replacements and firms’ innovation dynamics: New evidence from Italian matched longitudinal data," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    5. Jaeyong Song & Paul Almeida & Geraldine Wu, 2003. "Learning--by--Hiring: When Is Mobility More Likely to Facilitate Interfirm Knowledge Transfer?," Management Science, INFORMS, vol. 49(4), pages 351-365, April.
    6. Mustafa Kesen, 2016. "The Impact of Employee Training and Innovation on Turnover Intention: An Empirical Research," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(1), pages 174-185, January.

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