Firm-level innovation activity, employee turnover and HRM practices — Evidence from Chinese firms

Tor Eriksson, Zhihua Qin and Wenjing Wang

China Economic Review, 2014, vol. 30, issue C, 583-597

Abstract: This paper examines the relationship between employee turnover, HRM practices and innovation in Chinese firms in five high technology sectors. We estimate hurdle negative binomial models for count data on survey data allowing for analyses of the extensive as well as intensive margins of firms' innovation activities. Innovation is measured both by the number of ongoing projects and new commercialized products. The results show that higher R&D employee turnover is associated with a higher probability of being innovative, but decreases the intensity of innovation activities in innovating firms. Innovating firms are more likely to have adopted high performance HRM practices, and the impact of employee turnover varies with the number of HRM practices implemented by the firm.

Keywords: Innovation; HRM practices; Employee turnover (search for similar items in EconPapers)
JEL-codes: L22 M50 O31 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:30:y:2014:i:c:p:583-597

DOI: 10.1016/j.chieco.2014.02.005

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