We investigate the effect of parental leave taken by top management team (TMT) members on innovation outputs in small and medium-sized enterprises (SMEs). By analyzing a large sample of Swedish SMEs, we find that the length of parental leave taken by TMT members has a positive effect on SME innovation outputs. This effect is stronger for smaller and longer-tenured TMTs, as these TMTs likely exhibit greater behavioral integration. Such integration can support TMT members in mitigating role conflicts and leveraging the role enhancement benefits connected to performing multiple roles during and after leave. These results contribute to the literature and offer valuable practical insights.
Naldi et al. (Fri,) studied this question.