Technological dynamism and labor investment efficiency: exploring strategic resilience
| dc.contributor.author | Ahmed, Mohamed Shaker | |
| dc.contributor.author | Mertzanis, Charilaos | |
| dc.contributor.author | Kumar, Satish | |
| dc.contributor.author | Helmi, Mohamad Husam | |
| dc.contributor.other | Al Ain University, Al Ain, United Arab Emirates | |
| dc.date.accessioned | 2026-10-04T12:03:24Z | |
| dc.date.issued | 2026-09-27 | |
| dc.description | References: 85 | |
| dc.description.abstract | This study contributes to the literature by exploring the impact of technological dynamism (TD) on labor investment efficiency, analyzing non-financial U.S. firms listed on the S&P 500 index from 1993 to 2023. Employing a novel TD measure based on industry-level R&D intensity, we find that firms in highly dynamic technological environments face greater challenges in achieving labor investment efficiency, with inefficiencies primarily driven by overinvestment rather than underinvestment. Robust across various sensitivity and endogeneity tests, the results highlight how rapid technological change complicates optimal labor allocation. Leadership characteristics significantly moderate this relationship, as external CEOs and extensive CEO media coverage weaken the link between TD and LIE, while longer CEO tenure enhances firms’ alignment of labor investments with technological demands. Furthermore, corporate diversification, firm age, the adoption of the Inevitable Disclosure Doctrine, and business strategies emerge as key moderators through which TD influences LIE, demonstrating the interplay between organizational strategies and regulatory frameworks. | en |
| dc.description.uri | https://link.springer.com/10.1007/s11846-026-01067-0 | |
| dc.identifier.doi | 10.1007/s11846-026-01067-0 | |
| dc.identifier.issn | 18636683 | |
| dc.identifier.issn | 18636691 | |
| dc.identifier.issn | 1863-6683 | |
| dc.identifier.issn | 1863-6691 | |
| dc.identifier.other | Scopus EID: 2-s2.0-105051911923 | |
| dc.identifier.other | Scopus ID: 105051911923 | |
| dc.identifier.uri | https://doi.org/10.1007/s11846-026-01067-0 | |
| dc.identifier.uri | https://scholarlyworks.ra.ac.ae/handle/123456789/2624 | |
| dc.language.iso | en | |
| dc.publisher | Springer Science and Business Media LLC | |
| dc.relation.isreferencedby | Ahmed MS, Kumar S, Gupta P, Bamel N (2024) CEO media coverage and cash holdings. Int Rev Financ Anal 91:103041 | |
| dc.relation.isreferencedby | Aldrich HE (1979) Organizations and environments. Prentice-Hall, Englewood Cliffs, NJ | |
| dc.relation.isreferencedby | Apascaritei P, Elvira MM (2022) Dynamizing human resources: an integrative review of SHRM and dynamic capabilities research. Hum Resour Manag Rev 32(4):100878 | |
| dc.relation.isreferencedby | Arshad MU, Khan FN, ILyas M, Haider W (2026) Academic-experienced CEOs and investment efficiency of Chinese listed firms: moderating role of cash holdings. Rev Manag Sci 20:1793–1843 | |
| dc.relation.isreferencedby | Au S-Y, Dong M, Tremblay A (2021) Employee flexibility, exogenous risk, and firm value. J Financ Quant Anal 56(3):853–884 | |
| dc.relation.isreferencedby | Bai J, Mkrtchyan A (2023) What do outside CEOs really do? Evidence from plant-level data. J Financ Econ 147(1):27–48 | |
| dc.relation.isreferencedby | Balasubramanian N, Lee J (2008) Firm age and innovation. Ind Corp Change 17(5):1019–1047 | |
| dc.relation.isreferencedby | Becker GS (1964) Human capital: a theoretical and empirical analysis with special reference to education, 1st ed. Columbia University Press, New York | |
| dc.relation.isreferencedby | Belenzon S, Shamshur A, Zarutskie R (2019) CEO’s age and the performance of closely held firms. Strateg Manag J 40(6):917–944 | |
| dc.relation.isreferencedby | Ben-Nasr H, Alshwer AA (2016) Does stock price informativeness affect labor investment efficiency? J Corp Financ 38:249–271 | |
| dc.relation.isreferencedby | Bentley KA, Omer TC, Sharp NY (2013) Business strategy, financial reporting irregularities, and audit effort. Contemp Account Res 30(2):780–817 | |
| dc.relation.isreferencedby | Biddle GC, Hilary G, Verdi RS (2009) How does financial reporting quality relate to investment efficiency? J Account Econ 48(2–3):112–131 | |
| dc.relation.isreferencedby | Boubaker S, Dang VA, Sassi S (2022) Competitive pressure and firm investment efficiency: evidence from corporate employment decisions. Eur Financ Manag 28(1):113–161 | |
| dc.relation.isreferencedby | Cahan SF, Chen C, Chen L, Nguyen NH (2015) Corporate social responsibility and media coverage. J Bank Finance 59:409–422 | |
| dc.relation.isreferencedby | Cai J, Tylecote A (2008) Corporate governance and technological dynamism of Chinese firms in mobile telecommunications: a quantitative study. Res Policy 37(10):1790–1811 | |
| dc.relation.isreferencedby | Canil J, Karpavičius S, Yu C-F (2023) CEO mobility and corporate payouts. J Bus Finance Account 50(9–10):1743–1778 | |
| dc.relation.isreferencedby | Cao Z, Rees W (2020) Do employee-friendly firms invest more efficiently? Evidence from labor investment efficiency. J Corp Finance 65:101744 | |
| dc.relation.isreferencedby | Cao Z, Rees W, Zhang Z (2023) The effect of real earnings smoothing on corporate labour investment. Br Account Rev 55(6):101178 | |
| dc.relation.isreferencedby | Chen R, El Ghoul S, Guedhami O, Wang H (2017) Do state and foreign ownership affect investment efficiency? Evidence from privatizations. J Corp Finance 42:408–421 | |
| dc.relation.isreferencedby | Chen W, Zhang Y, Zhao J, Hu G, Zou G (2021) CEO media coverage and corporate investment. J Int Account Res 20(3):1–19 | |
| dc.relation.isreferencedby | Chen Y, Jermias J (2014) Business strategy, executive compensation and firm performance. Account Finance 54(1):113–134 | |
| dc.relation.isreferencedby | Chowdhury H, Le TH, Tan KJ (2025) Organization capital and labor investment efficiency. J Financ Stab 77:101384 | |
| dc.relation.isreferencedby | Ćirović D, Dabić M, Melović B, Backović T (2026) Unleashing SME innovation in small open economies: the strategic role of market dynamism, R&D, and organizational capabilities. RMS 20:737–773 | |
| dc.relation.isreferencedby | Coad A, Segarra A, Teruel M (2016) Innovation and firm growth: does firm age play a role? Res Policy 45(2):387–400 | |
| dc.relation.isreferencedby | Colak G, Korkeamäki T (2021) CEO mobility and corporate policy risk. J Corp Financ 69:102037 | |
| dc.relation.isreferencedby | Dixit AK, Pindyck RS (1994) Investment under uncertainty. Princeton University Press, Princeton, NJ | |
| dc.relation.isreferencedby | Do H, Budhwar P, Shipton H, Nguyen H-D, Nguyen B (2022) Building organizational resilience, innovation through resource-based management initiatives, organizational learning and environmental dynamism. J Bus Res 141:808–821 | |
| dc.relation.isreferencedby | Ee MS, Hasan I, Huang H (2022) Stock liquidity and corporate labor investment. J Corp Financ 72:102142 | |
| dc.relation.isreferencedby | Ensley MD, Pearce CL, Hmieleski KM (2006) The moderating effect of environmental dynamism on the relationship between entrepreneur leadership behavior and new venture performance. J Bus Ventur 31(2):243–263 | |
| dc.relation.isreferencedby | Erhemjamts O, Huang K (2019) Institutional ownership horizon, corporate social responsibility and shareholder value. J Bus Res 105:61–79 | |
| dc.relation.isreferencedby | Erl L, Kiesel F, Schiereck D (2025) The diversity of divestiture– stock market reactions around the announcements of divestiture programs. Rev Manag Sci 19:2729–2773 | |
| dc.relation.isreferencedby | Ertimur Y, Rawson C, Rogers JL, Zechman SL (2018) Bridging the gap: evidence from externally hired CEOs. J Account Res 56(2):521–579 | |
| dc.relation.isreferencedby | Fainshmidt S, Smith AW, Aguilera RV (2022) Where do born globals come from? A neoconfigurational institutional theory. Organ Sci 33(4):1251–1272 | |
| dc.relation.isreferencedby | García-Villaverde PM, Rodrigo-Alarcón J, Parra-Requena G, Ruiz-Ortega MJ (2018) Technological dynamism and entrepreneurial orientation: the heterogeneous effects of social capital. J Bus Res 83:51–64 | |
| dc.relation.isreferencedby | Gerhart B, Feng J (2021) The resource-based view of the firm, human resources, and human capital: progress and prospects. J Manag 47(7):1796–1819 | |
| dc.relation.isreferencedby | Ghaly M, Dang VA, Stathopoulos K (2020) Institutional investors’ horizons and corporate employment decisions. J Corp Financ 64:101634 | |
| dc.relation.isreferencedby | Gómez J, Pérez-Aradros B, Salazar I (2022) How to beat early movers: the role of competitive strategy and industry dynamism on followers’ performance in the telecommunications industry. Long Range Plann 55(5):102244 | |
| dc.relation.isreferencedby | Gong N, Guo L, Wang Z (2023) Shareholder litigation and workplace safety. J Corp Financ 82:102467 | |
| dc.relation.isreferencedby | Grant RM (1996) Toward a knowledge-based theory of the firm. Strateg Manag J 17(52):109–122 | |
| dc.relation.isreferencedby | Habib A, Hasan MM (2021) Business strategy and labor investment efficiency. Int Rev Financ 21(1):58–96 | |
| dc.relation.isreferencedby | Helfat CE, Martin JA (2015) Dynamic managerial capabilities: review and assessment of managerial impact on strategic change. J Manag 41(5):1281–1312 | |
| dc.relation.isreferencedby | Imbens GW, Angrist JD (1994) Identification and estimation of local average treatment effects. Econometrica 62(2):467–475 | |
| dc.relation.isreferencedby | Jian M, Lee KW (2011) Does CEO reputation matter for capital investments? J Corp Financ 17:929–946 | |
| dc.relation.isreferencedby | Jung B, Lee W-J, Weber DP (2014) Financial reporting quality and labor investment efficiency. Contemp Account Res 31(4):1047–1076 | |
| dc.relation.isreferencedby | Kafouros M, Aliyev M, Piperopoulos P, Au A, Ho JW, Wong SY (2024) The role of institutional quality and industry dynamism in explaining firm performance in emerging economies. Glob Strateg J 14(1):56–83 | |
| dc.relation.isreferencedby | Keats BW, Hitt MA (1988) A causal model of linkages among environmental dimensions, macro organizational characteristics, and performance. Acad Manag J 31(3):570–598 | |
| dc.relation.isreferencedby | Khanna N, Tice S (2001) The bright side of internal capital markets. J Finance 56(4):1489–1528 | |
| dc.relation.isreferencedby | Khedmati M, Sualihu MA, Yawson A (2020) CEO-director ties and labor investment efficiency. J Corp Finance 65:101492 | |
| dc.relation.isreferencedby | Kieschnick R, Moussawi R (2018) Firm age, corporate governance, and capital structure choices. J Corp Finance 48:597–614 | |
| dc.relation.isreferencedby | Klasa S, Ortiz-Molina H, Serfling M, Srinivasan S (2018) Protection of trade secrets and capital structure decisions. J Financ Econ 128(2):266–286 | |
| dc.relation.isreferencedby | Kogut B, Zander U (1992) Knowledge of the firm, combinative capabilities, and the replication of technology. Organ Sci 3(3):383–397 | |
| dc.relation.isreferencedby | Kuppuswamy V, Villalonga B (2016) Does diversification create value in the presence of external financing constraints? Evidence from the 2007–2009 financial crisis. Manag Sci 62(4):905–923 | |
| dc.relation.isreferencedby | Le A-T, Tran TP (2022) Corporate governance and labor investment efficiency: international evidence from board reforms. Corp Gov Int Rev 30(5):555–583 | |
| dc.relation.isreferencedby | Lewbel A (2012) Using heteroscedasticity to identify and estimate mismeasured and endogenous regressor models. J Bus Econ Stat 30(1):67–80 | |
| dc.relation.isreferencedby | Li D-y, Liu J (2014) Dynamic capabilities, environmental dynamism, and competitive advantage: evidence from China. J Bus Res 67(1):2793–2799 | |
| dc.relation.isreferencedby | Martínez-Sánchez A, Vela-Jiménez M-J, Pérez-Pérez M, de-Luis-Carnicer P (2012) The dynamics of labour flexibility: Relationships between employment type and innovativeness. J Manag Stud 48(4):715–736 | |
| dc.relation.isreferencedby | Matsa DA (2018) Capital structure and a firm’s workforce. Annu Rev Financ Econ 10:387–412 | |
| dc.relation.isreferencedby | McGrath RG (1999) Falling forward: real options reasoning and entrepreneurial failure. Acad Manag Rev 24:13–30 | |
| dc.relation.isreferencedby | McKelvie A, Davidsson P (2009) From resource base to dynamic capabilities: an investigation of new firms. Br J Manag 20(S1):S63–S80 | |
| dc.relation.isreferencedby | Milbourn TT (2003) CEO reputation and stock-based compensation. J Financ Econ 68(2):233–262 | |
| dc.relation.isreferencedby | Oster E (2019) Unobservable selection and coefficient stability: theory and evidence. J Bus Econ Stat 37(2):187–204 | |
| dc.relation.isreferencedby | Ozbas O, Scharfstein DS (2010) Evidence on the dark side of internal capital markets. Rev Financ Stud 23(2):581–599 | |
| dc.relation.isreferencedby | Pfarrer MD, Pollock TG, Rindova VP (2010) A tale of two assets: the effect of firm reputation and celebrity on earnings surprises and investors’ reactions. Acad Manag J 33(5):1131–1152 | |
| dc.relation.isreferencedby | Pinnuck M, Lillis AM (2007) Profits versus losses: does reporting an accounting loss act as a heuristic trigger to exercise the abandonment option and divest employees? Account Rev 48(4):1031–1053 | |
| dc.relation.isreferencedby | Ployhart RE (2021) Resources for what? Understanding performance in the resource-based view and strategic human capital resource literatures. J Manag 47(7):1771–1786 | |
| dc.relation.isreferencedby | Qiu B, Wang T (2018) Does knowledge protection benefit shareholders? Evidence from stock market reaction and firm investment in knowledge assets. J Financ Quant Anal 53(3):1341–1370 | |
| dc.relation.isreferencedby | Quigley TJ, Hambrick DC, Misangyi VF, Alessandra R (2019) CEO selection as risk-taking: a new vantage on the debate about the consequences of insiders versus outsiders. Strat Manag J 40(9):1453–1470 | |
| dc.relation.isreferencedby | Rosenbaum PR, Rubin DB (1983) The central role of the propensity score in observational studies for causal effects. Biometrika 70(1):41–55 | |
| dc.relation.isreferencedby | Roychowdhury S, Shroff N, Verdi RS (2019) The effects of financial reporting and disclosure on corporate investment: a review. J Account Econ 68(2–3):101246 | |
| dc.relation.isreferencedby | Schilke O (2014) On the contingent value of dynamic capabilities for competitive advantage: the nonlinear moderating effect of environmental dynamism. Strateg Manag J 35(2):179–203 | |
| dc.relation.isreferencedby | Schubert T, Baier E, Rammer C (2018) Firm capabilities, technological dynamism and the internationalisation of innovation: a behavioural approach. J Int Bus Stud 49:70–95 | |
| dc.relation.isreferencedby | Shao L, Kwok CC, Zhang R (2013) National culture and corporate investment. J Int Bus Stud 44:745–763 | |
| dc.relation.isreferencedby | Simerly RL, Li M (2000) Environmental dynamism, capital structure and performance: a theoretical integration and an empirical test. Strateg Manag J 21(1):31–49 | |
| dc.relation.isreferencedby | Tetlock PC (2007) Giving content to investor sentiment: the role of media in the stock market. J Finance 62(3):1139–1168 | |
| dc.relation.isreferencedby | Torre ED, Zatzick CD, Sikora D, Solari L (2018) Workforce churning, human capital disruption, and organisational performance in different technological contexts. Hum Resour Manag J 28(1):112–127 | |
| dc.relation.isreferencedby | Triguero Á, Córcoles D (2013) Understanding innovation: an analysis of persistence for Spanish manufacturing firms. Res Policy 42(2):340–352 | |
| dc.relation.isreferencedby | Uotila J, Maula M, Keil T, Zahra SA (2009) Exploration, exploitation, and financial performance: analysis of S&P 500 corporations. Strateg Manag J 30(2):221–231 | |
| dc.relation.isreferencedby | Wang H, Chen W-R (2010) Is firm-specific innovation associated with greater value appropriation? The roles of environmental dynamism and technological diversity. Res Policy 39(1):141–154 | |
| dc.relation.isreferencedby | Wang X, Sun J, Tian L, Guo W, Gu T (2021) Environmental dynamism and cooperative innovation: the moderating role of state ownership and institutional development. J Technol Transf 46:1344–1375 | |
| dc.relation.isreferencedby | Wang YY (2023) Corporate diversification, investment efficiency and the business cycle. J Corp Financ 78:102353 | |
| dc.relation.isreferencedby | Wright PM, Snell SA (1998) Toward a unifying framework for exploring fit and flexibility in strategic human resource management. Acad Manag Rev 23(4):756–772 | |
| dc.relation.isreferencedby | Wu S, Levitas E, Priem RL (2005) CEO tenure and company invention under differing levels of technological dynamism. Acad Manag J 48(5):859–873 | |
| dc.relation.isreferencedby | Yuan Y, Lu LY, Tian G, Yu Y (2020) Business strategy and corporate social responsibility. J Bus Ethics 162:359–377 | |
| dc.relation.isreferencedby | Zhou KZ, Wu F (2010) Technological capability, strategic flexibility, and product innovation. Strateg Manag J 31(5):547–561 | |
| dc.relation.isreferencedby | Zingales L (2000) In search of new foundations. J Finance 55(4):1623–1653 | |
| dc.relation.uri | PDF: https://link.springer.com/content/pdf/10.1007/s11846-026-01067-0.pdf | |
| dc.relation.uri | PDF: https://link.springer.com/content/pdf/10.1007/s11846-026-01067-0.pdf | |
| dc.rights | Open Access | |
| dc.rights | CC BY-NC-ND | |
| dc.rights.uri | https://creativecommons.org/licenses/by-nc-nd/4.0 | |
| dc.source | Review of Managerial Science | |
| dc.source.uri | https://api.elsevier.com/content/abstract/scopus_id/105051911923 | |
| dc.subject | Supply Chain Resilience and Risk Management | |
| dc.subject | Regional resilience and development | |
| dc.subject | Economic and Technological Innovation | |
| dc.subject | Dynamism | |
| dc.subject | Resilience (materials science) | |
| dc.title | Technological dynamism and labor investment efficiency: exploring strategic resilience | en |
| dc.type | Article | |
| person.identifier.orcid | 0000-0003-0907-7939 |
Files
Original bundle
1 - 1 of 1
Loading...
- Name:
- article.pdf
- Size:
- 1.53 MB
- Format:
- Adobe Portable Document Format
- Description:
- Full text PDF
