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Labor flexibility and firm performance

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  • Mireia Valverde
  • Olga Tregaskis
  • Chris Brewster

Abstract

The aim of this paper is to add to the labor flexibility debate by exploring the relationship between different forms of flexible working practices and the performance of the firm. Although there is a strong argument that labor flexibility can lead to greater financial success through the reduction in labor costs and the ability to use labor resources more efficiently, little empirical evidence has been provided to demonstrate the existence of such a relationship. This paper reviews the existing literature, puts forward a number of research propositions, and tests them by using data drawn from the Cranet-E International Survey of Strategic Human Resource Management. Only one form of numerical flexibility is found to have a positive relationship with firm performance. Proposals for further research are suggested. Copyright International Atlantic Economic Society 2000

Suggested Citation

  • Mireia Valverde & Olga Tregaskis & Chris Brewster, 2000. "Labor flexibility and firm performance," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 6(4), pages 649-661, November.
    • Handle: RePEc:kap:iaecre:v:6:y:2000:i:4:p:649-661:10.1007/bf02295375
    DOI: 10.1007/BF02295375
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    References listed on IDEAS

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    1. Laurie Hunter & Alan McGregor & John Maclnnes & Alan Sproull, 1993. "The ‘Flexible Firm’: Strategy and Segmentation," British Journal of Industrial Relations, London School of Economics, vol. 31(3), pages 383-407, September.
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    Cited by:

    1. Saibal Ghosh, 2022. "Firm Performance and Productivity: Is Labour an Obstacle?," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 65(3), pages 709-728, September.
    2. Somaieh Alavi, 2016. "The influence of workforce agility on external manufacturing flexibility of Iranian SMEs," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 8(1), pages 111-127.
    3. Kozica, Arjan & Kaiser, Stephan, 2012. "A Sustainability Perspective on Flexible HRM: How to Cope with Paradoxes of Contingent Work," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 23(3), pages 239-261.
    4. Rupietta, Kira, 2015. "How does Part-time Work Affect Firm Performance and Innovation Activity?," Working papers 2015/05, Faculty of Business and Economics - University of Basel.
    5. Nico Dewaelheyns & Cynthia Van Hulle & Yannick Van Landuyt & Mathias Verreydt, 2021. "Labor Contracts, Wages and SME Failure," Sustainability, MDPI, vol. 13(14), pages 1-15, July.
    6. Andreas Koch & Jochen Späth & Harald Strotmann, 2013. "The role of employees for post-entry firm growth," Small Business Economics, Springer, vol. 41(3), pages 733-755, October.
    7. Adriana AnaMaria Davidescu & Simona-Andreea Apostu & Andreea Paul & Ionut Casuneanu, 2020. "Work Flexibility, Job Satisfaction, and Job Performance among Romanian Employees—Implications for Sustainable Human Resource Management," Sustainability, MDPI, vol. 12(15), pages 1-53, July.
    8. Andreas Koch & Jochen Spaeth, 2009. "New Firms---Different Jobs? An Inquiry into the Quality of Employment in Start-ups and Incumbents," IAW Discussion Papers 50, Institut für Angewandte Wirtschaftsforschung (IAW).
    9. Uschi Backes-Gellner & Marlies Kluike & Kerstin Pull & Martin R. Schneider & Silvia Teuber, 2016. "Human resource management and radical innovation: a fuzzy-set QCA of US multinationals in Germany, Switzerland, and the UK," Journal of Business Economics, Springer, vol. 86(7), pages 751-772, October.
    10. A. Arrighetti & E. Bartoloni & F. Landini & C. Pollio, 2019. "Exuberant proclivity towards non-standard employment: evidence from linked employer-employee data," Economics Department Working Papers 2019-EP02, Department of Economics, Parma University (Italy).
    11. Luca Cattani & Stefano Dughera & Fabio Landini, 2023. "Interlocking complementarities between job design and labour contracts," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(2), pages 501-528, July.
    12. Stuart Glosser & Lonnie Golden, 2005. "Is labour becoming more or less flexible? Changing dynamic behaviour and asymmetries of labour input in US manufacturing," Cambridge Journal of Economics, Oxford University Press, vol. 29(4), pages 535-557, July.
    13. Jochen Späth, 2013. "Non-standard Employment, Working Time Arrangements, Establishment Entry and Exit," IAW Discussion Papers 98, Institut für Angewandte Wirtschaftsforschung (IAW).
    14. Smirnykh, Larisa & Wörgötter, Andreas, 2019. "The importance of institutional and organizational characteristics for the use of fixed-term contracts in Russia," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 24(1), pages 89-121.
    15. Andreas Koch & Daniel Pastuh & Jochen Späth, 2013. "New Firms and New Forms of Work," IAW Discussion Papers 97, Institut für Angewandte Wirtschaftsforschung (IAW).
    16. Christopher J. Boudreaux, 2021. "Employee compensation and new venture performance: does benefit type matter?," Small Business Economics, Springer, vol. 57(3), pages 1453-1477, October.
    17. Berkery, Elaine & Morley, Michael J. & Tiernan, Siobhán & Peretz, Hilla, 2020. "From start to finish: Flexi-time as a social exchange and its impact on organizational outcomes," European Management Journal, Elsevier, vol. 38(4), pages 591-601.
    18. A. Arrighetti & L. Cattani & F. Landini & A. Lasagni, 2019. "Work Flexibility and Firm Growth," Economics Department Working Papers 2019-EP04, Department of Economics, Parma University (Italy).

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