IDEAS home Printed from https://ideas.repec.org/a/gam/jadmsc/v14y2024i10p244-d1491048.html

New Evidence of the Impact of Innovative Capacity on Firm Employment

Author

Listed:
  • Héctor Alejandro López

    (Vice-Rectorate for Academic Affairs, Instituto Superior Tecnológico de Técnicas Empresariales y del Conocimiento—INTEC, Quito 170520, Ecuador
    Business School, Universidad Internacional del Ecuador, Quito 170411, Ecuador)

  • Rosa Yagüe-Perales

    (Department of Applied Economics, University of Valencia, 46022 Valencia, Spain)

  • Isidre March-Chordá

    (Department of Business Administration, University of Valencia, 46022 Valencia, Spain)

Abstract

The business behavior towards innovation and its impact on the creation of new jobs of 113 firms in the Valencian Community (Spain) were analyzed between 2014 and 2020. The sample included manufacturing, services and trading enterprises; technological and non-technological companies; micro-, small, medium, and large enterprises; and locations across the entire geographical extent of the Valencian Community. The firms were divided into quartiles based on their level of employment growth, linearly correlating this variable with 14 innovation indicators for each of the resulting four groups, reflecting the innovative capacity of these firms. It was found that the factor linked to innovation capacity that most favors or drives business employment creation is co-operation with other companies, as it had a direct and significant relationship with the two highest growth groups (quartiles 4 and 3), with no negative relationship with either of the two lower growth groups (quartiles 2 and 1). This suggests that the public administration should increase efforts to create spaces for the exchange of ideas between companies and organizations to reduce unemployment levels. Overall, this study provides new insights into the subject, and its findings lead to the conclusion that firms with higher innovative capacity create more jobs.

Suggested Citation

  • Héctor Alejandro López & Rosa Yagüe-Perales & Isidre March-Chordá, 2024. "New Evidence of the Impact of Innovative Capacity on Firm Employment," Administrative Sciences, MDPI, vol. 14(10), pages 1-16, October.
    • Handle: RePEc:gam:jadmsc:v:14:y:2024:i:10:p:244-:d:1491048
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2076-3387/14/10/244/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2076-3387/14/10/244/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Teece, David J, 2018. "Dynamic capabilities as (workable) management systems theory," Journal of Management & Organization, Cambridge University Press, vol. 24(3), pages 359-368, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lydia Schaap & Femke Nijland & Miriam Cents-Boonstra & Kristin Vanlommel, 2025. "A Framework Supporting the Innovative Capacity of Higher Education Institutions: An Integrative Literature Review," Sustainability, MDPI, vol. 17(14), pages 1-33, July.
    2. Greg Linden & David J Teece, 2018. "Remarks on Pisano: “toward a prescriptive theory of dynamic capabilities”," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(6), pages 1175-1179.
    3. Makatleho Georginah Domela & Ze Tian & Brian Mereta, 2025. "Chinese mining sector investment and energy independence in Africa: A panel data analysis of 20 Countries from 2013 to 2022," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 14(2), pages 217-232, March.
    4. Geoffrey Rogito Nyamotal & Dionysious Kihika Kiambi & Kirema Nkanata Mburugu, 2024. "Influence of Democratic Leadership Style on the Performance of Agricultural Enterprises in Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(6), pages 2441-2453, June.
    5. Dolores Gallardo-Vázquez, 2023. "Attributes influencing responsible tourism consumer choices: Sustainable local food and drink, health-related services, and entertainment," Oeconomia Copernicana, Institute of Economic Research, vol. 14(2), pages 645-686, June.
    6. Ndila L Yanda & Austin Mwange & John Moose & Clement Mwaanga, 2025. "The Role of Strategic Evaluation and Control in SME Performance: Lessons from Empirical Evidence in Kabwe District," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 6(1).
    7. Sachin Modgil & Rohit Kumar Singh & Soni Agrawal, 2025. "Developing human capabilities for supply chains: an industry 5.0 perspective," Annals of Operations Research, Springer, vol. 348(3), pages 2075-2105, May.
    8. López, C. & Morales-Contreras, M.F. & Langella, I.M. & Alonso-Monge, J., 2025. "Modeling supply chain disruptions due to geopolitical Reasons: A systematic literature review," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 202(C).
    9. Md. Rashed & Md. Kamal Uddin & Mohammad Fakhrul Islam & Md. Faisal-E-Alam & Hasanuzzaman Tushar & Md Emon Ahmed, 2025. "Building Resilient Organizations: The Role of Technological Capability, Innovation Leadership, and Sustainability," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 26(4), pages 963-995, December.
    10. Xu Zhang & Xing Bao, 2025. "Sustainable Transformation: The Impact of Climate Risk Perception on Corporate Operational Resilience in China," Sustainability, MDPI, vol. 17(8), pages 1-19, April.
    11. Husseini Sadick Alhaji & Gáti Mirkó, 2025. "The influence of dynamic capabilities on firm performance: Examining the moderating role of government support in Ghanaian SMEs," Management & Marketing, Sciendo, vol. 20(4), pages 156-172.
    12. Shaker A. Zahra & Olga Petricevic & Yadong Luo, 2022. "Toward an action-based view of dynamic capabilities for international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 583-600, June.
    13. Orozco, Luis Antonio & Sanabria, John Alirio & Sosa, Juan Camilo & Aristizabal, Jeimy & López, Liliana, 2022. "How do IT investments interact with other resources to improve innovation?," Journal of Business Research, Elsevier, vol. 144(C), pages 358-365.
    14. Chang-Geun Kim & Oh-Suk Yang, 2024. "Global Companies’ Dynamic Response to Business Environment Uncertainty through Digital Transformation: Sustainable Digital Quality–Customer Value–Market Performance Relationships," Sustainability, MDPI, vol. 16(15), pages 1-32, July.
    15. Sebastian Planck & Sonja Wilhelm & Johanna Kobilke & Klaus Sailer, 2024. "Greater than the Sum of Its Parts: Combining Entrepreneurial and Sustainable Competencies in Entrepreneurship Education," Sustainability, MDPI, vol. 16(9), pages 1-17, April.
    16. Abel Duarte Alonso & Seng K. Kok & Seamus O'Brien, 2019. "Understanding Approaches To Innovation Through The Dynamic Capabilities Lens: A Multi-Country Study Of The Wine Industry," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(06), pages 1-30, August.
    17. Omar Sacilotto Donaires & Luciana Oranges Cezarino & Lara Bartocci Liboni, 2026. "A Systems Approach to the Dynamic Capabilities View: Putting the Pieces Together," Systemic Practice and Action Research, Springer, vol. 39(1), pages 1-36, March.
    18. Miikka Blomster & Timo Koivumäki, 2022. "Exploring the resources, competencies, and capabilities needed for successful machine learning projects in digital marketing," Information Systems and e-Business Management, Springer, vol. 20(1), pages 123-169, March.
    19. Jacqueline de Almeida Barbosa Franco & Ary Franco Junior & Rosane Aparecida Gomes Battistelle & Barbara Stolte Bezerra, 2024. "Dynamic Capabilities: Unveiling Key Resources for Environmental Sustainability and Economic Sustainability, and Corporate Social Responsibility towards Sustainable Development Goals," Resources, MDPI, vol. 13(2), pages 1-25, February.
    20. Renier Steyn, 2020. "Leadership Styles and Organisational Structure," International Journal of Human Resource Studies, Macrothink Institute, vol. 10(3), pages 98116-98116, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jadmsc:v:14:y:2024:i:10:p:244-:d:1491048. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager The email address of this maintainer does not seem to be valid anymore. Please ask MDPI Indexing Manager to update the entry or send us the correct address (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.