IDEAS home Printed from https://ideas.repec.org/a/pal/abaman/v18y2019i4d10.1057_s41291-018-00052-0.html
   My bibliography  Save this article

Unions and the productivity performance of multinational enterprises: evidence from China

Author

Listed:
  • Tony Fang

    (Xihua University
    Memorial University of Newfoundland)

  • Ying Ge

    (Zhejiang University)

  • Youqing Fan

    (Western Sydney University)

Abstract

This paper uses the economic census data of multinational enterprises (MNEs) in the Chinese manufacturing industry to investigate the effects of Chinese unions on firm productivity. We show that Chinese unions have a significant “collective voice” effect by participating in a wide range of decision-making and production-related activities. The empirical evidence suggests that the presence of Chinese unions in MNEs is positively associated with enterprise productivity. We also find that the union productivity effects are stronger in MNEs than those in domestic private firms and that the effectiveness of unions is more significant in skill-intensive industries.

Suggested Citation

  • Tony Fang & Ying Ge & Youqing Fan, 2019. "Unions and the productivity performance of multinational enterprises: evidence from China," Asian Business & Management, Palgrave Macmillan, vol. 18(4), pages 281-300, September.
  • Handle: RePEc:pal:abaman:v:18:y:2019:i:4:d:10.1057_s41291-018-00052-0
    DOI: 10.1057/s41291-018-00052-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41291-018-00052-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1057/s41291-018-00052-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Brown, Charles & Medoff, James, 1978. "Trade Unions in the Production Process," Journal of Political Economy, University of Chicago Press, vol. 86(3), pages 355-378, June.
    2. Sunghoon Kim & Jian Han & Longkai Zhao, 2014. "Union Recognition by Multinational Companies in China: A Dual Institutional Pressure Perspective," ILR Review, Cornell University, ILR School, vol. 67(1), pages 34-59, January.
    3. Ying Ge, 2014. "Do Chinese Unions Have “Real” Effects On Employee Compensation?," Contemporary Economic Policy, Western Economic Association International, vol. 32(1), pages 187-202, January.
    4. Laroche, P., 2000. "What do Unions do to Productivity? A Meta-Analysis," Papers 2000-5, Groupe de recherche en économie financière et en gestion des entreprises, Universite Nancy 2.
    5. Barry T. Hirsch, 1991. "Labor Unions and the Economic Performance of Unions," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number luepf, November.
    6. Clark, Kim B, 1984. "Unionization and Firm Performance: The Impact on Profits, Growth, and Productivity," American Economic Review, American Economic Association, vol. 74(5), pages 893-919, December.
    7. Lu, Yi & Tao, Zhigang & Wang, Yijiang, 2010. "Union effects on performance and employment relations: Evidence from China," China Economic Review, Elsevier, vol. 21(1), pages 202-210, March.
    8. Yang Yao & Ninghua Zhong, 2010. "Unions Improve Chinese Workers' Welfare," Labor Economics Working Papers 22771, East Asian Bureau of Economic Research.
    9. Mingwei Liu & Chunyun Li, 2014. "Environment Pressures, Managerial Industrial Relations Ideologies and Unionization in Chinese Enterprises," British Journal of Industrial Relations, London School of Economics, vol. 52(1), pages 82-111, March.
    10. Hirsch, Barry T, 1991. "Union Coverage and Profitability among U.S. Firms," The Review of Economics and Statistics, MIT Press, vol. 73(1), pages 69-77, February.
    11. Toshiaki Tachibanaki & Tomohiko Noda, 2000. "The Effect of Union Voices on Productivity," Palgrave Macmillan Books, in: The Economic Effects of Trade Unions in Japan, chapter 8, pages 137-157, Palgrave Macmillan.
    12. Toshiaki Tachibanaki & Tomohiko Noda, 2000. "The Economic Effects of Trade Unions in Japan," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-333-98380-5, December.
    13. Addison, John T & Hirsch, Barry T, 1989. "Union Effects on Productivity, Profits, and Growth: Has the Long Run Arrived?," Journal of Labor Economics, University of Chicago Press, vol. 7(1), pages 72-105, January.
    14. Fang, Tony & Ge, Ying, 2012. "Unions and firm innovation in China: Synergy or strife?," China Economic Review, Elsevier, vol. 23(1), pages 170-180.
    15. David Fairris, 2006. "Union Voice Effects in Mexico," British Journal of Industrial Relations, London School of Economics, vol. 44(4), pages 781-800, December.
    16. Morikawa, Masayuki, 2010. "Labor unions and productivity: An empirical analysis using Japanese firm-level data," Labour Economics, Elsevier, vol. 17(6), pages 1030-1037, December.
    17. Fallick, Bruce C & Hassett, Kevin A, 1999. "Investment and Union Certification," Journal of Labor Economics, University of Chicago Press, vol. 17(3), pages 570-582, July.
    18. Sajid Anwar & Sizhong Sun, 2015. "Unionisation and Firm Performance in China’s Manufacturing Industries," Journal of Labor Research, Springer, vol. 36(1), pages 78-102, March.
    19. Giorgio Brunello, 1992. "The Effect of Unions on Firm Performance in Japanese Manufacturing," ILR Review, Cornell University, ILR School, vol. 45(3), pages 471-487, April.
    20. Malcolm Warner & Ng Sek-Hong, 1999. "Collective Contracts in Chinese Enterprises: A New Brand of Collective Bargaining under ‘Market Socialism’?," British Journal of Industrial Relations, London School of Economics, vol. 37(2), pages 295-314, June.
    21. Simon Clarke & Chang‐Hee Lee & Qi Li, 2004. "Collective Consultation and Industrial Relations in China," British Journal of Industrial Relations, London School of Economics, vol. 42(2), pages 235-254, June.
    22. Andy W. Chan & Ed Snape & Michelle S. Luo & Yujuan Zhai, 2017. "The Developing Role of Unions in China's Foreign-Invested Enterprises," British Journal of Industrial Relations, London School of Economics, vol. 55(3), pages 602-625, September.
    23. Mark Doms & Eric J. Bartelsman, 2000. "Understanding Productivity: Lessons from Longitudinal Microdata," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 569-594, September.
    24. Barry T. Hirsch, 2004. "What Do Unions Do for Economic Performance?," Journal of Labor Research, Transaction Publishers, vol. 25(3), pages 415-456, July.
    25. James T. Bennett & Bruce E. Kaufman, 2004. "What Do Unions Do?: A Twenty-Year Perspective," Journal of Labor Research, Transaction Publishers, vol. 25(3), pages 339-350, July.
    26. Peter Nolan & Paul Marginson, 1990. "Skating on Thin Ice? David Metcalf on Trade Unions and Productivity," British Journal of Industrial Relations, London School of Economics, vol. 28(2), pages 227-247, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Laroche, Patrice, 2020. "Unions, Collective Bargaining and Firm Performance," GLO Discussion Paper Series 728, Global Labor Organization (GLO).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Laroche, Patrice, 2020. "Unions, Collective Bargaining and Firm Performance," GLO Discussion Paper Series 728, Global Labor Organization (GLO).
    2. Fang, Tony & Ge, Ying, 2012. "Unions and firm innovation in China: Synergy or strife?," China Economic Review, Elsevier, vol. 23(1), pages 170-180.
    3. Fang, Tony & Ge, Ying, 2013. "Chinese Unions and Enterprises Performance," IZA Discussion Papers 7870, Institute of Labor Economics (IZA).
    4. David Metcalf, 2002. "Unions and Productivity, Financial Performance and Investment: International Evidence," CEP Discussion Papers dp0539, Centre for Economic Performance, LSE.
    5. Richard B. Freeman, 2005. "What Do Unions Do?-- The 2004 M-Brane Stringtwister Edition," Journal of Labor Research, Transaction Publishers, vol. 26(4), pages 641-668, November.
    6. Morikawa, Masayuki, 2010. "Labor unions and productivity: An empirical analysis using Japanese firm-level data," Labour Economics, Elsevier, vol. 17(6), pages 1030-1037, December.
    7. Fernando Rios-Avila, 2017. "Unions and Economic Performance in Developing Countries: Case Studies from Latin America," Revista Ecos de Economía, Universidad EAFIT, vol. 21(44), pages 4-36, June.
    8. Cardullo, Gabriele & Conti, Maurizio & Sulis, Giovanni, 2015. "Sunk capital, unions and the hold-up problem: Theory and evidence from cross-country sectoral data," European Economic Review, Elsevier, vol. 76(C), pages 253-274.
    9. MORIKAWA Masayuki, 2008. "What Do Japanese Unions Do for Productivity?: An Empirical Analysis Using Firm-Level Data," Discussion papers 08027, Research Institute of Economy, Trade and Industry (RIETI).
    10. Barry T. Hirsch, 2012. "Unions, dynamism, and economic performance," Chapters, in: Cynthia L. Estlund & Michael L. Wachter (ed.), Research Handbook on the Economics of Labor and Employment Law, chapter 4, pages 107-145, Edward Elgar Publishing.
    11. Barry T. Hirsch, 2008. "Sluggish Institutions in a Dynamic World: Can Unions and Industrial Competition Coexist?," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 153-176, Winter.
    12. John T. Addison, 2005. "The Determinants Of Firm Performance: Unions, Works Councils, And Employee Involvement/High‐Performance Work Practices," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(3), pages 406-450, July.
    13. S. Dobbelaere, 2003. "Joint Estimation of Price-Cost Margins and Union Bargaining Power for Belgian Manufacturing," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/171, Ghent University, Faculty of Economics and Business Administration.
    14. Balsmeier, Benjamin, 2017. "Unions, collective relations laws and R&D investment in emerging and developing countries," Research Policy, Elsevier, vol. 46(1), pages 292-304.
    15. Metcalf, David, 2002. "Unions and productivity, financial performance and investment: international evidence," LSE Research Online Documents on Economics 20072, London School of Economics and Political Science, LSE Library.
    16. Zafiris TZANNATOS & Toke S. AIDT, 2006. "Unions and microeconomic performance: A look at what matters for economists (and employers)," International Labour Review, International Labour Organization, vol. 145(4), pages 257-278, December.
    17. Patrice Laroche & Heidi Wechtler, 2011. "The Effects of Labor Unions on Workplace Performance: New Evidence from France," Journal of Labor Research, Springer, vol. 32(2), pages 157-180, June.
    18. John T. Addison & Clive R. Belfield, 2004. "Union Voice," Journal of Labor Research, Transaction Publishers, vol. 25(4), pages 563-596, October.
    19. Dong, Zhiqiang & Luo, Zijun & Wei, Xiahai, 2016. "Social insurance with Chinese characteristics: The role of communist party in private firms," China Economic Review, Elsevier, vol. 37(C), pages 40-51.
    20. Tony Fang & John S. Heywood, 2006. "Unionization and plant closure in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 39(4), pages 1173-1194, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:abaman:v:18:y:2019:i:4:d:10.1057_s41291-018-00052-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.