The effect of employment externalization on orientation to innovation

Abstract

Purpose – This paper aims to analyze the influence of externalization in the workforce on creating a work context that supports innovation and the moderation of this relationship by different contextual variables. Design/methodology/approach – These relationships were studied using a sample of 249 workers from five firms. Hierarchical regression analysis was used to contrast the hypotheses. Findings – The results of the study indicate that externalization affects the permanent worker’s orientation to innovation negatively and that this relationship is moderated by contextual variables such as group potency and monitoring. Originality/value – The aim of this paper is to stimulate new lines of research on externalization and orientation to innovation and their repercussions for the firm.