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Novelty and new firm performance: The case of employment systems in knowledge-intensive service organizations

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  • Jennings, Jennifer E.
  • Jennings, P. Devereaux
  • Greenwood, Royston

Abstract

This paper investigates a question at the core of entrepreneurship research: how does novelty affect new venture performance? We address this question for a type of factor-market innovation deemed critical in the contemporary economy: novelty in employment systems. Our longitudinal study of new firms in a knowledge-intensive service industry shows that the relationship between employment-system novelty and organizational productivity is curvilinear and U-shaped. We also find suggestive evidence that new firms with employment systems exhibiting discrepant degrees of novelty (i.e., combinations of highly conforming and highly novel practices) are less productive than those with coherent employment systems.

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  • Jennings, Jennifer E. & Jennings, P. Devereaux & Greenwood, Royston, 2009. "Novelty and new firm performance: The case of employment systems in knowledge-intensive service organizations," Journal of Business Venturing, Elsevier, vol. 24(4), pages 338-359, July.
    • Handle: RePEc:eee:jbvent:v:24:y:2009:i:4:p:338-359
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    19. Juan Bu & Eric Yanfei Zhao & Krista J. Li & Joanna Mingxuan Li, 2022. "Multilevel optimal distinctiveness: Examining the impact of within‐ and between‐organization distinctiveness of product design on market performance," Strategic Management Journal, Wiley Blackwell, vol. 43(9), pages 1793-1822, September.
    20. Hai Guo & Jintong Tang & Zhongfeng Su, 2014. "To be different, or to be the same? The interactive effect of organizational regulatory legitimacy and entrepreneurial orientation on new venture performance," Asia Pacific Journal of Management, Springer, vol. 31(3), pages 665-685, September.
    21. Corsini, Filippo & Rizzi, Francesco & Frey, Marco, 2018. "Institutional legitimacy of non-profit innovation facilitators: Strategic postures in regulated environments," Technology in Society, Elsevier, vol. 53(C), pages 69-78.
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