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Deploying human capital for innovation: A study of multi-country manufacturing firms

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  • Ma, Li
  • Zhai, Xin
  • Zhong, Weiguo
  • Zhang, Zhi-Xue

Abstract

We study how firms across different countries and regions deploy human capital for innovation. Based on survey data from 304 manufacturing firms across 13 economies, we find that both task-related training and employee participation improve firm innovation in terms of the commercial success of new product development and the percentage of firm revenue from newly developed products. More importantly, the effects of training on innovation are stronger when firms have a high (rather than low) centralization of authority and when firms are located in fast- (rather than slow-) growing economies; in contrast, the effects of employee participation remain the same across levels of firm centralization and rates of growth in the economy. Our findings contribute to the research on the deployment of human capital in an international context and offer practical implications for global managers.

Suggested Citation

  • Ma, Li & Zhai, Xin & Zhong, Weiguo & Zhang, Zhi-Xue, 2019. "Deploying human capital for innovation: A study of multi-country manufacturing firms," International Journal of Production Economics, Elsevier, vol. 208(C), pages 241-253.
    • Handle: RePEc:eee:proeco:v:208:y:2019:i:c:p:241-253
    DOI: 10.1016/j.ijpe.2018.12.001
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