The impact of temporary workers on the conversion of innovation efforts into product innovations: the case of Spanish companies

Óscar Rodríguez-Ruiz, José Fernández-Menéndez, Zuleyka Díaz-Martínez and Marta Fossas-Olalla

Evidence-based HRM, 2020, vol. 9, issue 3, 276-292

Abstract: Purpose - In this paper, we study the influence of temporary workers in the relationship between innovation effort and product innovation in a large sample of Spanish manufacturing firms in a six-year period. Design/methodology/approach - The article uses a zero-inflated regression model to analyse how the performance of innovation efforts is affected by the impact of temporary employment. Findings - Our results show that the use of temporary employment has adverse effects for the conversion of innovation investments into innovation outputs. Firms with higher levels of fixed-term workers have less product innovations in comparison to firms that do not use this kind of workforce. However, this negative impact is less detrimental in technological-intensive sectors. Originality/value - The value of this research for employment relations is salient as workers long-term protection seems to enhance the effectiveness of the innovation process. At the same time, the effects of temporary work vary depending on the sector.

Keywords: Temporary workers; Innovation; Job security; Zero-inflated regression model (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ebhrmp:ebhrm-01-2020-0005

DOI: 10.1108/EBHRM-01-2020-0005

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