TY  - RPRT
        AU  - Dostie, Benoit
AU  - Jayaraman, Rajshri
        TI  - The Effect of Adversity on Process Innovations and Managerial Incentives
        PY  - 2009/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 4261
        UR  - https://www.iza.org/index.php/publications/dp4261
        AB  - This paper asks whether adversity spurs the introduction of process innovations and increases the use of managerial incentives by firms. Using a large panel data set of workplaces in Canada, our identification strategy relies on exogenous variation in adversity arising from increased border security along the 49th parallel following 9/11. Our longitudinal difference-in-differences estimates indicate that firms responded to adversity by introducing new or improved processes, but did not change their use of managerial incentives. These results suggest that the threat of bankruptcy may provide impetus for improving efficiency.
        KW  - efficiency
KW  - managerial incentives
KW  - natural experiment
KW  - process innovation
        ER  -