Sustainable Enterprise Development in the Manufacturing Sector: Flexible Employment and Innovation in China

Abstract

Since the COVID-19 outbreak, the scope and market size of flexible employment in sustainable enterprise development have significantly increased worldwide, yet academic literature offer little information about the outcomes and moderators of flexible employment in China. The paper advances current knowledge and empirically addresses this gap by examining the effects of flexible employment on enterprise innovation input and output, with information technology capability and labor regulation as unexplored moderators. Based on data from 1179 manufacturing enterprises in China, this paper uses the OLS method to conduct empirical tests. The results show that (1) flexible employment has positively contributed to sustainable enterprise development by facilitating innovation inputs and outputs; (2) superior enterprise information technology capabilities and strict labor regulations were significant moderating factors in this relationship. The findings provide credible evidence for enterprises to pursue flexible employment as an inexhaustible impetus for sustainable economic and enterprise development.