Dostie, Benoit; Jayaraman, Rajshri - 2009
not flrms per
se, but rather managers working in these flrms who typically introduce process
innovations. Managerial …-contractible, the threat of liquidation in-
duces managers to work harder in order to innovate, reduce costs, and avert
bankruptcy.
At … the same time, if proflts are reduced, a proflt maximizing flrm may or
may not push harder for managers to innovate by …