Li Rui

(School of Public Policy and Management, Tsinghua University, China)

 

 

Abstract: We hypothesize that the effect of employee involvement on enterprise innovational performance is constrained by the degree of company’s formalization. Based on the data collected from 127 large and medium Chinese companies, we empirically test this hypothesis. Our results show that without considering the degree of company’s formalization, employee involvement plays a positive role in the creation of enterprise business innovation but is harmful to the commercialization of such an innovation. After considering the formality degree, employee involvement is helpful to the commercialization of innovation but harmful to the creation of innovation when formality degree is high, while it is harmful to the commercialization of innovation but helpful to the creation of innovation when formality degree is low. The conclusion of this paper integrates the research results of this issue based on the perspective of organizational behavior and organization theory, enhances the understanding of the meaning of employee involvement in enterprise innovational performance.

 

 

Key words: innovational performance; employee involvement; formalization

 

JEL codes: O31