The Extra-Organizational Determinants of Innovation: Sunshine Exposure and Inventor Performance

66 Pages Posted: 24 May 2016 Last revised: 17 Oct 2019

See all articles by Yangyang Chen

Yangyang Chen

City University of Hong Kong (CityUHK) - Department of Accountancy

Po-Hsuan Hsu

National Tsing Hua University - Department of Quantitative Finance

Aleksandra Kacperczyk

London Business School

Edward Podolski

Deakin University; Financial Research Network (FIRN)

Madhu Veeraraghavan

T.A. PAI Management Institute, Finance Area; T A Pai Management Institute, Manipal

Date Written: October 18, 2019

Abstract

We propose that extra-organizational factors such as exposure to sunshine are an important driver of innovators’ performance. Prior research highlights the critical role non-pecuniary factors play in influencing inventors’ productivity, yet most of these studies focus on organizational and job attributes and the resulting job satisfaction. We argue, by contrast, that, by triggering positive affective states, sunshine exposure enhances creativity, leading to greater quantity and quality of innovative output. We test our hypotheses using information on every patent granted by the U.S. Patent and Trademark Office from 1976 to 2010, together with information on the sunshine exposure for each inventor. We find evidence suggesting that relative sunshine exposure results in more patents and patents of higher quality. Our results further suggest that greater sunshine exposure leads to patents that are more original, and which build on non-local knowledge and newly-developed technologies. Alternative explanations related to geographical heterogeneity, managerial decisions, migration, and time allocation are not supported. Improved creativity and initiative at work are identified as the mechanisms through extra-organizational factors (i.e., sunshine) that stimulate inventor performance. We present novel evidence on the non-pecuniary determinants of inventor productivity and the real effects of positive affect on economies.

Keywords: mood; inventor performance; innovation; creativity

JEL Classification: G39, J33, M52, O31

Suggested Citation

Chen, Yangyang and Hsu, Po-Hsuan and Kacperczyk, Aleksandra and Podolski, Edward and Veeraraghavan, Madhu, The Extra-Organizational Determinants of Innovation: Sunshine Exposure and Inventor Performance (October 18, 2019). Available at SSRN: https://ssrn.com/abstract=2782918 or http://dx.doi.org/10.2139/ssrn.2782918

Yangyang Chen (Contact Author)

City University of Hong Kong (CityUHK) - Department of Accountancy ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong
China

Po-Hsuan Hsu

National Tsing Hua University - Department of Quantitative Finance ( email )

101, Section 2, Kuang-Fu Road
Hsinchu, Taiwan 300
China

Aleksandra Kacperczyk

London Business School ( email )

Sussex Place
Regent's Park
London, London NW1 4SA
United Kingdom

Edward Podolski

Deakin University ( email )

221 Burwood Highway
Burwood, Victoria 3125
Australia

Financial Research Network (FIRN) ( email )

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

Madhu Veeraraghavan

T.A. PAI Management Institute, Finance Area ( email )

Bangalore
Manipal, Karnataka 576104
India
+91-820-2701030 (Phone)

T A Pai Management Institute, Manipal ( email )

TAPMI Canpus
Manipal
Manipal, Manipal 576104
India
+91-820-2701020 (Phone)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
354
Abstract Views
2,130
rank
103,168
PlumX Metrics