The impact of organization capital on firm innovation

Bill Francis, Suresh Babu Mani, Zenu Sharma, Qiang Wu

Research output: Journal article publicationJournal articleAcademic researchpeer-review

26 Citations (Scopus)


We show that firms’ organization capital has a positive and economically important impact on innovation. Specifically, we find that firms with more organization capital have greater number of patents and receive more citations on their patents. The results are robust to alternative measures of organization capital and innovation, and endogeneity concerns. We also find that the ability to handle inherent difficulties associated with the innovation process and the reduction in managerial career concern threats are possible mechanisms through which organization capital affects firm innovation positively. These results provide strong evidence of the importance of a firm's organization capital in their innovation process.

Original languageEnglish
Article number100829
JournalJournal of Financial Stability
Publication statusPublished - Apr 2021


  • Citations
  • Innovation
  • Organization capital
  • Patents

ASJC Scopus subject areas

  • Finance
  • Economics, Econometrics and Finance(all)


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