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The link between business strategy and industrial relations systems in American steel minimills


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  • Jeffrey B. Arthur
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    This study tests the "strategic choice" proposition that variation in workplace industrial relations policies and practices is related to differences in business strategy. A cluster analysis of data from a 1988-89 questionnaire examining workplace industrial relations and business strategies in U.S. steel minimills suggests that the industrial relations systems of these mills can be broadly categorized as emphasizing either cost reduction or employee commitment; similarly, the business strategies of the mills appear to stress either the manufacture of a few products in large quantities at the lowest possible cost, or more flexible manufacturing, with products marketed on some basis other than cost. Further investigation shows a significant association between the type of workplace industrial relations system and the business strategy choices in these mills. (Abstract courtesy JSTOR.)

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    Bibliographic Info

    Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

    Volume (Year): 45 (1992)
    Issue (Month): 3 (April)
    Pages: 488-506

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    Handle: RePEc:ilr:articl:v:45:y:1992:i:3:p:488-506

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    Cited by:
    1. Denis Chênevert & Michel Tremblay, 2011. "Between universality and contingency: An international study of compensation performance," International Journal of Manpower, Emerald Group Publishing, vol. 32(8), pages 856-878, November.
    2. Roos, Anders & Flinkman, Matti & Jappinen, Armas & Lonner, Goran & Warensjo, Mats, 2001. "Production strategies in the Swedish softwood sawmilling industry," Forest Policy and Economics, Elsevier, vol. 3(3-4), pages 189-197, November.
    3. Bae, Johngseok & Rowley, Chris, 2004. "Macro and micro approaches in human resource development: context and content in South Korea," Journal of World Business, Elsevier, vol. 39(4), pages 349-361, November.
    4. Bayo-Moriones, Alberto & Merino-Diaz de Cerio, Javier, 2001. "Quality management and high performance work practices: Do they coexist?," International Journal of Production Economics, Elsevier, vol. 73(3), pages 251-259, October.
    5. Brent Boning & Casey Ichniowski & Kathryn Shaw, 2007. "Opportunity Counts: Teams and the Effectiveness of Production Incentives," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 613-650.
    6. Lindbeck, Assar & Snower, Dennis J., 1997. "Centralized Bargaining, Multi-Tasking and Work Incentives," Seminar Papers 620, Stockholm University, Institute for International Economic Studies.
    7. repec:lan:wpaper:3727 is not listed on IDEAS
    8. Stephanie Lluis, . "Human Resource Management Practices and Wage Dispersion in U.S. Establishments," Working Papers 0603, Human Resources and Labor Studies, University of Minnesota (Twin Cities Campus).
    9. repec:lan:wpaper:4012 is not listed on IDEAS
    10. Lertxundi Lertxundi, Aitziber, . "Enpresaren estrategia konpetitiboa errendimendu handiko lan-sistemen faktore baldintzatzaile gisa," Revista de Dirección y Administración de Empresas, Universidad del País Vasco - Escuela Universitaria de Estudios Empresariales de San Sebastián.
    11. repec:lan:wpaper:3619 is not listed on IDEAS
    12. Chiang, Yun-Hwa & Shih, Hsi-An & Hsu, Chu-Chun, 2014. "High commitment work system, transactive memory system, and new product performance," Journal of Business Research, Elsevier, vol. 67(4), pages 631-640.
    13. Cristini, Annalisa & Pozzoli, Dario, 2008. "New Workplace Practices and Firm Performance: A Comparative Study of Italy and Britain," Working Papers 08-9, University of Aarhus, Aarhus School of Business, Department of Economics.
    14. repec:lan:wpaper:3621 is not listed on IDEAS
    15. Gupta, Vishal, . "Development of a Causal Framework linking High Perofrmance HRM Practices, Positive Psychological Capital, Creative Behaviours," IIMA Working Papers WP2013-03-05, Indian Institute of Management Ahmedabad, Research and Publication Department.
    16. A I Petrescu & R Simmons & S Bradley, 2004. "The impacts of human resource management practices and pay inequality on workers' job satisfaction," Working Papers 542602, Lancaster University Management School, Economics Department.
    17. Kato, Takao & Owan, Hideo, 2011. "Market characteristics, intra-firm coordination, and the choice of human resource management systems: Theory and evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 80(3), pages 375-396.
    18. Grip,Andries,de & Sieben,Inge, 2004. "The Effects of Human Resource Management on Workers' Wages and Firm Productivity," ROA Research Memorandum 001, Maastricht University, Research Centre for Education and the Labour Market (ROA).


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