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Employee Protection and Corporate Innovation: Empirical Evidence from China

Author

Listed:
  • Lijing Tong

    (Renmin University of China)

  • Ningyue Liu

    (Beijing Institute of Technology)

  • Min Zhang

    (Renmin University of China
    the Collaborative Innovation Centre for State-owned Assets Administration)

  • Liming Wang

    (Beijing University of Technology
    University College Dublin)

Abstract

Through an analysis of survey data gathered from private firms in China, this study examines the impact of employee protection on corporate innovation ability. The results indicate that firms with more advanced employee protection have stronger innovation ability. Furthermore, the positive relationship between employee protection and corporate innovation ability is more pronounced in those enterprises with labor unions. Finally, a firm’s political connections strengthen the influence of employee protection on corporate innovation. These empirical findings highlight the positive consolidating effects of labor unions and political connections and will be of value to policy makers in emerging markets in gauging the important drivers of corporate innovation ability.

Suggested Citation

  • Lijing Tong & Ningyue Liu & Min Zhang & Liming Wang, 2018. "Employee Protection and Corporate Innovation: Empirical Evidence from China," Journal of Business Ethics, Springer, vol. 153(2), pages 569-589, December.
    • Handle: RePEc:kap:jbuset:v:153:y:2018:i:2:d:10.1007_s10551-016-3412-3
    DOI: 10.1007/s10551-016-3412-3
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