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The Adoption and Diffusion of Organizational Innovation: Evidence for the U.S. Economy

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  • Lynch, Lisa M.

    (Brandeis University)

Abstract

Using a unique longitudinal representative survey of both manufacturing and non-manufacturing businesses in the United States during the 1990’s, I examine the incidence and intensity of organizational innovation and the factors associated with investments in organizational innovation. Past profits tend to be positively associated with organizational innovation. Employers with a more external focus and broader networks to learn about best practices (as proxied by exports, benchmarking, and being part of a multi-establishment firm) are more likely to invest in organizational innovation. Investments in human capital, information technology, R&D, and physical capital appear to be complementary with investments in organizational innovation. In addition, non-unionized manufacturing plants are more likely to have invested more broadly and intensely in organizational innovation.

Suggested Citation

  • Lynch, Lisa M., 2007. "The Adoption and Diffusion of Organizational Innovation: Evidence for the U.S. Economy," IZA Discussion Papers 2819, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp2819
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    References listed on IDEAS

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    1. Sandra E. Black & Lisa M. Lynch, 2004. "What's driving the new economy?: the benefits of workplace innovation," Economic Journal, Royal Economic Society, vol. 114(493), pages 97-116, February.
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    Cited by:

    1. Frank Butter & Jan Möhlmann & Paul Wit, 2008. "Trade and product innovations as sources for productivity increases: an empirical analysis," Journal of Productivity Analysis, Springer, vol. 30(3), pages 201-211, December.
    2. López, Alberto, 2012. "Productivity effects of ICTs and organizational change: A test of the complementarity hypothesis in Spain," MPRA Paper 40400, University Library of Munich, Germany.
    3. Massimiliano Mazzanti & Davide Antonioli & Susanna Mancinelli, 2011. "Are Environmental Innovations Embedded within High-Performance Organizational Changes?," Working Papers 201115, University of Ferrara, Department of Economics.
    4. Michael Waldman, 2012. "Theory and Evidence in Internal LaborMarkets [The Handbook of Organizational Economics]," Introductory Chapters,, Princeton University Press.
    5. Maliranta, Mika & Asplund, Rita, 2007. "Training and Hiring Strategies to Improve Firm Performance," Discussion Papers 1105, The Research Institute of the Finnish Economy.
    6. Luis Garicano & Paul Heaton, 2010. "Information Technology, Organization, and Productivity in the Public Sector: Evidence from Police Departments," Journal of Labor Economics, University of Chicago Press, vol. 28(1), pages 167-201, January.
    7. Francesco Sandulli & José Fernández-Menéndez & Antonio Rodríguez-Duarte & José López-Sánchez, 2012. "The productivity payoff of information technology in multimarket SMEs," Small Business Economics, Springer, vol. 39(1), pages 99-117, July.
    8. Priit Vahter & Maaja Vadi, 2022. "The Relationship Of Technological And Organizational Innovation With Firm Performance: Opening The Black Box Of Dynamic Complementarities," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 138, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    9. Federico Biagi & Maria Laura Parisi & Lucia Vergano, 2008. "Organizational Innovations and Labor Productivity in a Panel of Italian Manufacturing Firms," Working Papers 0813, University of Brescia, Department of Economics.
    10. Sharma, Vivek & Bhat, Dada Ab Rouf, 2020. "Co-creation and service innovation as performance indicators in the hospitality industry," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 12(2), pages 76-95..
    11. Nabil Bikourane & Sihame Zraoula, 2016. "Le contrôle de gestion hospitalier et innovations managériales," Post-Print hal-01900560, HAL.
    12. Elisabetta Magnani, 2012. "Vertical disintegration and training: evidence from a matched employer–employee survey," Journal of Productivity Analysis, Springer, vol. 38(2), pages 199-217, October.
    13. Kato, Takao & Owan, Hideo, 2011. "Market characteristics, intra-firm coordination, and the choice of human resource management systems: Theory and evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 80(3), pages 375-396.
    14. B. Atrostic, 2008. "Measuring U.S. innovative activity: business data at the U.S. Census Bureau," The Journal of Technology Transfer, Springer, vol. 33(2), pages 153-171, April.
    15. Eric J. Bartelsman, 2010. "Searching for the sources of productivity from macro to micro and back," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(6), pages 1891-1917, December.
    16. MOTHE Caroline & NGUYEN Thi Thuc Uyen, 2011. "Do firms rely on sources of information for organizational innovation?," LISER Working Paper Series 2011-39, Luxembourg Institute of Socio-Economic Research (LISER).
    17. Yassine Mehros & Abdelaziz Elabjani, 2019. "Smes Performance: Analysis Of The Innovation Role," Economic Archive, D. A. Tsenov Academy of Economics, Svishtov, Bulgaria, issue 4 Year 20, pages 61-74.

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    More about this item

    Keywords

    human capital; productivity; organizational innovation; technological change;
    All these keywords.

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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