Numerical labor flexibility and innovation outcomes of start-up firms: A panel data analysis

Masatoshi Kato, Haibo Zhou

Research output: Journal PublicationArticlepeer-review

16 Citations (Scopus)

Abstract

Using a panel data set based on repeated questionnaire surveys of Japanese start-up firms, this study examines the effects of numerical labor flexibility on the innovation outcomes of start-up firms, a topic on which there is currently insufficient research. Here, numerical labor flexibility is defined as the external labor turnover of regular employees and the proportion of non-regular employees, and innovation outcomes include product innovation and patent applications. The estimation results of a random-effects probit model indicate that an inverted U-shaped relationship exists between the external labor turnover of regular employees and the probability of patent applications. Moreover, a similar U-shaped relationship exists between the proportion of non-regular employees and the probability of product innovation. These results are interpreted in light of the organizational characteristics of start-up firms. The implications of the findings are discussed.

Original languageEnglish
Pages (from-to)15-27
Number of pages13
JournalTechnovation
Volume69
DOIs
Publication statusPublished - Jan 2018

Keywords

  • External labor turnover of regular employees
  • Numerical labor flexibility
  • Panel data
  • Patent applications
  • Product innovation
  • Start-up firm
  • The proportion of non-regular employees

ASJC Scopus subject areas

  • Engineering (all)
  • Management of Technology and Innovation

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