Small firm innovation performance and employee involvement

Andries, Petra ; Czarnitzki, Dirk

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URN: urn:nbn:de:bsz:180-madoc-313904
Document Type: Working paper
Year of publication: 2012
The title of a journal, publication series: ZEW Discussion Papers
Volume: 12-013
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: M12 , O31 , O32,
Subject headings (SWD): Deutschland , Innovation , Klein- und Mittelunternehmen , Führungskräfte , Arbeitskräfte , Kreativität , Schätzung , Verarbeitendes Gewerbe , Unternehmensdienstleistung
Keywords (English): Employee involvement , upper echelon , non-managerial employees , innovation performance , small firms
Abstract: It is known that small firms rely mainly on the CEO’s individual knowledge for developing innovations. Recent work suggests that this approach is inefficient since it underutilizes other employees’ knowledge. We study to which extent using CEOs, managers and non-managerial employees’ ideas enhances small firms’ innovation performance. A Heckman selection model on 305 small firms shows that not only CEO’s and managers’, but also non-managerial employees’ ideas contribute to innovation performance. However, contributions depend heavily on the individuals’ area of expertise and on whether product or process innovation is desired. Our findings enrich the current view on the entrepreneurial team, but also warn against the implementation of one-size-fits-all employee involvement programs in small firms.

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.

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