Workplace organization and innovation

Cindy Zoghi, Robert D. Mohr and Peter Meyer

Canadian Journal of Economics, 2010, vol. 43, issue 2, 622-639

Abstract: This study uses panel data on Canadian establishments to explore the relationship between the organization of work - in particular decentralization, information-sharing, and incentive pay schemes - and innovation. Like other studies, ours finds a clear positive link between these factors. However, the data give strong indications that this relationship is not causal. We show that: (1) the correlation between workplace organization and innovation holds for information-sharing but is much weaker for decentralized decision-making or incentive pay programs, (2) controls for unobserved heterogeneity significantly weaken results, and (3) lagged variables give no clear evidence that organizational changes predate innovation.

JEL-codes: L2 O33 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (15)

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