Effect of workplace innovation on organisational performance and sickness absence

Abstract

Workplace innovation is an organisational capability, defined as a strategic renewal in organising and organisational behaviour. This capability may consist of four resources: strategic orientation, product-market improvement, flexible work and organising smarter. Workplace innovation is theoretically rooted in the resource-based view of the firm. Analysis of the NEWS 2008 survey shows that Dutch organisations are 'rather' active with workplace innovation, with profit organisations being more active than non-profit organisations. Social innovative organisations are mostly active with product-market improvement, while least with flexible work. Organisations being more active with workplace innovation more often report an improved organisational performance. Conversely, workplace innovation has no significant effect on sickness absence rates. The first conclusion is that the theoretical construct of workplace innovation is an appropriate measure for monitoring among organisations. The second conclusion is that the effect of workplace innovation on organisational performance is strongest if organisations are active on more than one resource simultaneously. Interventions in flexible work and organising smarter are assumed to be most promising, since these resources may realise a relatively substantial gain in the effect of organisational performance.