The impact of organization capital on firm innovation

Abstract We show that firms’ organization capital has a positive and economically important impact on innovation. Specifically, we find that firms with more organization capital have greater number of patents and receive more citations on their patents. The results are robust to alternative measures of organization capital and innovation, and endogeneity concerns. We also find that the ability to handle inherent difficulties associated with the innovation process and the reduction in managerial career concern threats are possible mechanisms through which organization capital affects firm innovation positively. These results provide strong evidence of the importance of a firm’s organization capital in their innovation process.

• Publication year

  2021

• Venue

  Journal of Financial Stability

• Publication date

  2021-04-01

• Fields of study

  Business, Economics

• Identifiers
  DOI 10.1016/j.jfs.2020.100829
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

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