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Labor flexibility and innovation in new ventures

Author

Listed:
  • Irini Voudouris
  • Ioanna Deligianni
  • Spyros Lioukas

Abstract

The study investigates how labor flexibility affects innovation in new ventures. More specifically, drawing upon a sample of 143 Greek ventures less than 8 years old, it examines empirically the individual and interactive effects of functional and numerical flexibility on product innovation. It also considers how these effects are moderated by the entrepreneur’s political skill. Results suggest that functional flexibility has a positive direct effect on incremental innovation, whereas numerical flexibility has a positive direct effect on radical innovation. The interactions between numerical and functional flexibility affect both types of innovation. The results also suggest that the labor flexibility–innovation relationship is positively moderated by the entrepreneur’s political skill. These findings point toward aspects of knowledge related with flexible labor engagement and entrepreneurial relational capital that affect innovation.

Suggested Citation

  • Irini Voudouris & Ioanna Deligianni & Spyros Lioukas, 2017. "Labor flexibility and innovation in new ventures," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(5), pages 931-951.
    • Handle: RePEc:oup:indcch:v:26:y:2017:i:5:p:931-951.
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    File URL: http://hdl.handle.net/10.1093/icc/dtv019
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    Cited by:

    1. Hyunmin Choe & Yongwon Kim & Sungok Moon, 2022. "The Effect of Labor Flexibility on Financial Performance in Korea: The Moderating Effect of Labor Relations Climate," Sustainability, MDPI, vol. 14(4), pages 1-13, February.
    2. Martínez-Sánchez, Angel & Vicente-Oliva, Silvia & Pérez-Pérez, Manuela, 2020. "The relationship between R&D, the absorptive capacity of knowledge, human resource flexibility and innovation: Mediator effects on industrial firms," Journal of Business Research, Elsevier, vol. 118(C), pages 431-440.

    More about this item

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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