Employees' Social Responsibility and Innovation Performance—Mechanism and Evidence

Abstract

Abstract: This study investigates the impact of employees’ social responsibility (ESR) on firm innovation using financial data from Chinese listed companies spanning from 2007 to 2019. The findings reveal a significant positive relationship between ESR and innovation, as evidenced by an increase in patent authorizations and enhanced labor productivity. Particularly noteworthy is the pronounced effect observed in non-state-owned, high-tech, and well-established firms, with considerable benefits also observed in central urban companies. The robustness of the findings is confirmed through various analytical methods, including Instrumental Variables and Propensity Score Matching. This research highlights the pivotal role of ESR in fostering innovation within firms and suggests avenues for future exploration, particularly regarding ESR’s influence on the efficiency of innovation processes.

Key words: employee social responsibility, innovation performance, patent, R&D intensity

Zheng Lili. Employees' Social Responsibility and Innovation Performance—Mechanism and Evidence[J]. Management Review, 2024, 36(11): 84-97,109.

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