Workplace Organization and Innovation

18 Pages Posted: 21 Apr 2010

See all articles by Cindy Zoghi

Cindy Zoghi

U.S. Department of Labor - Bureau of Labor Statistics

Robert D. Mohr

University of New Hampshire - Department of Economics

Peter B. Meyer

US Bureau of Labor Statistics, Office of Productivity and Technology

Abstract

This study uses panel data on Canadian establishments to explore the relationship between the organization of work – in particular decentralization, informationsharing, 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.

Suggested Citation

Zoghi, Cindy and Mohr, Robert D. and Meyer, Peter Benjamin, Workplace Organization and Innovation. Canadian Journal of Economics/Revue canadienne d'économique, Vol. 43, Issue 2, pp. 622-639, May / mai 2010, Available at SSRN: https://ssrn.com/abstract=1593282 or http://dx.doi.org/10.1111/j.1540-5982.2010.01586.x

Cindy Zoghi (Contact Author)

U.S. Department of Labor - Bureau of Labor Statistics ( email )

2 Massachusetts Avenue, NE
Washington, DC 20212
United States

Robert D. Mohr

University of New Hampshire - Department of Economics ( email )

Durham, NH 03824
United States

Peter Benjamin Meyer

US Bureau of Labor Statistics, Office of Productivity and Technology ( email )

2 Massachusetts Avenue, NE
BLS room 2180
Washington, DC 20212
United States
202-691-5678 (Phone)

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