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Using External Work Arrangements in Core Value-creation Areas

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  • Nesheim, Torstein

Abstract

According to traditional perspectives on the 'flexible firm' ([Atkinson, 1984]) as well as influential theories in the field of strategic management (TCE, RBV), non-standard work arrangements should be used in the peripheral areas of the firm's value creation processes. Based on [Matusik and Hill, 1998], we argue that firms in dynamic environments often use non-standard, external work arrangements deliberately in core value-creation areas; to access knowledge, bring in new ideas and create an innovation-stimulation competence mix with the firm's employees. In a survey of 26 Norwegian firms in computer services, this proposition receives empirical support. Further, the use of external arrangements in the core value-creation areas is positively related to innovation strategy, while there is no statistical relation with the perceived labor shortage of the competence in question. An illustrative case is also included in the paper.

Suggested Citation

  • Nesheim, Torstein, 2003. "Using External Work Arrangements in Core Value-creation Areas," European Management Journal, Elsevier, vol. 21(4), pages 528-537, August.
    • Handle: RePEc:eee:eurman:v:21:y:2003:i:4:p:528-537
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    Cited by:

    1. Leonardo Pompa, 2021. "Growing Thanks to Whom? The Impact of Staff on Demand on Organizational Growth Dynamics: Evidence from Sweden," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 13(1), pages 1-80, January.
    2. Chiara Benassi & Andreas Kornelakis, 2021. "How Do Employers Choose between Types of Contingent Work? Costs, Control, and Institutional Toying," ILR Review, Cornell University, ILR School, vol. 74(3), pages 715-738, May.
    3. Nicole Torka & Jan Kees Looise & Stefan Zagelmeyer, 2011. "Ordinary Atypical Workers, Participation within the Firm and Innovation: A Theoretical Endeavor and Empirical Outlook," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 22(3), pages 221-239.
    4. Chengde You & Huishan Qiu & Zhuojie Pi & Mengyuan Yu, 2023. "Sustainable Enterprise Development in the Manufacturing Sector: Flexible Employment and Innovation in China," Sustainability, MDPI, vol. 15(10), pages 1-30, May.
    5. Nicole Torka & Jan Kees Looise & Stefan Zagelmeyer, 2011. "Ordinary Atypical Workers, Participation within the Firm and Innovation: A Theoretical Endeavor and Empirical Outlook," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 22(3), pages 221-239.

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