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Firm-level Innovation Activity, Employee Turnover and HRM Practices – Evidence from Chinese Firms

  • Tor Eriksson

    ()

    (Department of Economics and Business, Aarhus University, Denmark)

  • Zhihua Qin

    (Renmin University, China,)

  • Wenjing Wang

    (Department of Economics and Business, Aarhus University, Denmark)

This paper examines the relationship between employee turnover, HRM practices and innovation in Chinese firms in five high technology sectors. We estimate hurdle negative binomial models for count data on survey data allowing for analyses of the extensive as well as intensive margins of firms’ innovation activities. Innovation is measured both by the number of ongoing projects and new commercialized products. The results show that higher R&D employee turnover is associated with a higher probability of being innovative, but decreases the intensity of innovation activities in innovating firms. Innovating firms are more likely to have adopted high performance HRM practices, and the impact of employee turnover varies with the number of HRM practices implemented by the firm.

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Paper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2014-09.

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Length: 33
Date of creation: 25 Feb 2014
Date of revision:
Handle: RePEc:aah:aarhec:2014-09
Contact details of provider: Web page: http://www.econ.au.dk/afn/

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