Abstract
The resistance of employees against innovations can be partly explained by fundamental and easily obtainable information on the business strategy, the innovation goals and other characteristics of the firm. On the basis of a microeconometric analysis of representative German service firm data, this paper shows that employee resistance is stronger if the innovation is aimed at decreasing employment or increasing the work load of the employees and if the business prospects of the firm are negative. If the success of the firm is based on a diversification strategy and if the innovation aims at an improvement of the product or the product perception by the consumer, employee resistance is weaker. Finally, employee resistance is smaller in East German firms, in small firms, and in the information technology as well as the technical service sector.
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