Friendly Innovation? Employee-Friendly Policies, Sustainable Innovation, and Firm Value
International Journal of Human Resource Management
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In this study, we examine whether employee-friendly practices are associated with innovation through R&D investment, and whether firm value is related to employee-friendly practices and R&D investment. We find significantly positive associations between employee friendliness and R&D investment and between firm value and employee friendliness when R&D investment is high, based on a large sample of US firms. Both positive relations hold when we account for corporate governance. In addition, using the list of Fortune's “100 Best Companies to Work For” as an alternative measure of employee-friendly policies, we find firms with higher R&D investment are more likely to treat their workers favorably. Furthermore, we find that the market reaction is more positive when firms with higher R& D investment are selected in the Fortune list. This evidence supports our sustainable innovation hypothesis and value creation theory.
Employee-Friendly Practices; Human Capital; R&D Investment; Sustainable Innovation; Value Creation Theory
Business | Human Resources Management | Training and Development
Friendly Innovation? Employee-Friendly Policies, Sustainable Innovation, and Firm Value.
International Journal of Human Resource Management, 211(1),