IDEAS home Printed from https://ideas.repec.org/a/sae/ecoind/v43y2022i2p853-876.html
   My bibliography  Save this article

High-involvement management practices and the productivity of firms: Detecting industry heterogeneity

Author

Listed:
  • Laura Peutere

    (Faculty of Social Sciences, Tampere University, Finland)

  • Antti Saloniemi

    (Faculty of Social Sciences, Tampere University, Finland)

  • Petri Böckerman

    (University of Jyväskylä, School of Business and Economics and Labour Institute for Economic Research, Finland)

  • Simo Aho

    (Faculty of Social Sciences, Tampere University, Finland)

  • Jouko Nätti

    (Faculty of Social Sciences, Tampere University, Finland)

  • Tapio Nummi

    (Faculty of Information Technology and Communication Sciences, Tampere University, Finland)

Abstract

The aim of this article is to clarify the links between high-involvement management (HIM) practices, productivity and branches of industry. The data combine a representative survey ( N = 787) of private-sector firms in Finland and register-based firm-level data on sales per employee in the year following the survey. The authors analysed the data using mixture regression and identified two clusters in the association between HIM and productivity. In one cluster, high-involvement management and productivity were positively associated, while in the other cluster, the association was negative. The association between the intensity of HIM utilisation and productivity is not always additive; the benefits of HIM were most prominent in industries where HIM was most seldom utilised. This paradox was most notable in the service sector.

Suggested Citation

  • Laura Peutere & Antti Saloniemi & Petri Böckerman & Simo Aho & Jouko Nätti & Tapio Nummi, 2022. "High-involvement management practices and the productivity of firms: Detecting industry heterogeneity," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 43(2), pages 853-876, May.
    • Handle: RePEc:sae:ecoind:v:43:y:2022:i:2:p:853-876
    DOI: 10.1177/0143831X20961155
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0143831X20961155
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0143831X20961155?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
    ---><---

    References listed on IDEAS

    as
    1. Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, vol. 46(2), pages 385-406, June.
    2. Petri Böckerman & Pekka Ilmakunnas, 2012. "The Job Satisfaction-Productivity Nexus: A Study Using Matched Survey and Register Data," ILR Review, Cornell University, ILR School, vol. 65(2), pages 244-262, April.
    3. Alex Bryson & John Forth, 2018. "The Impact of Management Practices on SME Performance," National Institute of Economic and Social Research (NIESR) Discussion Papers 488, National Institute of Economic and Social Research.
    4. John Godard, 2004. "A Critical Assessment of the High‐Performance Paradigm," British Journal of Industrial Relations, London School of Economics, vol. 42(2), pages 349-378, June.
    5. Harvie Ramsay & Dora Scholarios & Bill Harley, 2000. "Employees and High‐Performance Work Systems: Testing inside the Black Box," British Journal of Industrial Relations, London School of Economics, vol. 38(4), pages 501-531, December.
    6. B.P.S. Murthi & Abdul A Rasheed & Irene Goll, 2013. "An Empirical Analysis of Strategic Groups in the Airline Industry using Latent Class Regressions," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 34(2), pages 59-73, March.
    7. John Godard, 2001. "Beyond the High‐Performance Paradigm? An Analysis of Variation in Canadian Managerial Perceptions of Reform Programme Effectiveness," British Journal of Industrial Relations, London School of Economics, vol. 39(1), pages 25-52, March.
    8. Sandra Broszeit & Marie‐Christine Laible & Ursula Fritsch & Holger Görg, 2019. "Management Practices and Productivity in Germany," German Economic Review, Verein für Socialpolitik, vol. 20(4), pages 657-705, November.
    9. Nai‐Wen Chi & Carol Yeh‐Yun Lin, 2011. "Beyond the High‐Performance Paradigm: Exploring the Curvilinear Relationship between High‐Performance Work Systems and Organizational Performance in Taiwanese Manufacturing Firms," British Journal of Industrial Relations, London School of Economics, vol. 49(3), pages 486-514, September.
    10. Peter Cappelli & David Neumark, 2001. "Do “High-Performance†Work Practices Improve Establishment-Level Outcomes?," ILR Review, Cornell University, ILR School, vol. 54(4), pages 737-775, July.
    11. Ali Dastmalchian & Nick Bacon & Nicola McNeil & Claudia Steinke & Paul Blyton & Medha Satish Kumar & Secil Bayraktar & Werner Auer-Rizzi & Ali Ahmad Bodla & Richard Cotton & Tim Craig & Behice Ertenu , 2020. "High-performance work systems and organizational performance across societal cultures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(3), pages 353-388, April.
    12. Naval Garg, 2019. "High performance work practices and organizational performance-mediation analysis of explanatory theories," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 68(4), pages 797-816, January.
    13. Jed DeVaro & Fidan Ana Kurtulus, 2006. "What Types of Organizations Benefit from Team Production, and How Do They Benefit?," Advances in the Economic Analysis of Participatory & Labor-Managed Firms, in: Participation in the Age of Globalization and Information, pages 3-54, Emerald Group Publishing Limited.
    14. Vazquez-Bustelo, Daniel & Avella, Lucía, 2019. "The effectiveness of high-involvement work practices in manufacturing firms: Does context matter?," Journal of Management & Organization, Cambridge University Press, vol. 25(2), pages 303-330, March.
    15. David E. Guest & Jonathan Michie & Neil Conway & Maura Sheehan, 2003. "Human Resource Management and Corporate Performance in the UK," British Journal of Industrial Relations, London School of Economics, vol. 41(2), pages 291-314, June.
    16. Grün, Bettina & Leisch, Friedrich, 2008. "FlexMix Version 2: Finite Mixtures with Concomitant Variables and Varying and Constant Parameters," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 28(i04).
    Full references (including those not matched with items on IDEAS)

    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. Michael White & Alex Bryson, 2018. "HPWS in the Public Sector: Are There Mutual Gains?," DoQSS Working Papers 18-10, Quantitative Social Science - UCL Social Research Institute, University College London.
    2. Alex Bryson & Lucy Stokes & David Wilkinson, 2023. "Is pupil attainment higher in well-managed schools?," Education Economics, Taylor & Francis Journals, vol. 31(1), pages 129-144, January.
    3. Michael Barry & Alex Bryson & Rafael Gomez & Bruce Kaufman & Guenther Lomas & Adrian Wilkinson, 2018. "The ''Good Workplace'': The Role of Joint Consultative Committees, Unions and HR policies in Employee Ratings of Workplaces in Britain," DoQSS Working Papers 18-08, Quantitative Social Science - UCL Social Research Institute, University College London.
    4. Barry, Michael & Bryson, Alex & Gomez, Rafael & Kaufman, Bruce E. & Lomas, Guenther & Wilkinson, Adrian, 2018. "The," IZA Discussion Papers 11860, Institute of Labor Economics (IZA).
    5. Riccardo Leoni, 2013. "Organization of work practices and productivity: an assessment of research on world- class manufacturing," Chapters, in: Anna Grandori (ed.), Handbook of Economic Organization, chapter 17, Edward Elgar Publishing.
    6. Böckerman, Petri & Bryson, Alex & Ilmakunnas, Pekka, 2012. "Does high involvement management improve worker wellbeing?," Journal of Economic Behavior & Organization, Elsevier, vol. 84(2), pages 660-680.
    7. Ferreira, Pedro & Porto, Nelida & Portela, Marta, 2010. "Women's participation in high performance work practices: a comparative analysis of Portugal and Spain," MPRA Paper 36404, University Library of Munich, Germany, revised 2010.
    8. Ludivine Martin, 2017. "Do Innovative Work Practices and Use of Information and Communication Technologies Motivate Employees?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(2), pages 263-292, April.
    9. Alex Bryson & Michael White, 2011. "HRM and Workplace Motivation: Incremental and Threshold Effects," CEP Discussion Papers dp1097, Centre for Economic Performance, LSE.
    10. Ali Murat BOYRAZ & Hatice ÖZUTKU, 2019. "Yüksek Performanslı Çalışma Sistemlerinin Algılanan Örgütsel Performans ve Finansal Performansa Etkisi: Türk Bankacılık Sektöründe Bir Araştırma," Istanbul Business Research, Istanbul University Business School, vol. 48(2), pages 248-283, November.
    11. David Guest & Christopher Woodrow, 2012. "Exploring the Boundaries of Human Resource Managers’ Responsibilities," Journal of Business Ethics, Springer, vol. 111(1), pages 109-119, November.
    12. Wei Chi & Richard B. Freeman & Morris M. Kleiner, 2011. "Adoption and Termination of Employee Involvement Programs," LABOUR, CEIS, vol. 25(1), pages 45-62, March.
    13. Marsden, David & Cañibano, Almudena, 2009. "Participation in organisations: economic approaches," LSE Research Online Documents on Economics 25167, London School of Economics and Political Science, LSE Library.
    14. John Forth & Alex Bryson, 2019. "Management practices and SME performance," Scottish Journal of Political Economy, Scottish Economic Society, vol. 66(4), pages 527-558, September.
    15. Jaap Paauwe, 2009. "HRM and Performance: Achievements, Methodological Issues and Prospects," Journal of Management Studies, Wiley Blackwell, vol. 46(1), pages 129-142, January.
    16. Matias Ramirez & Frederick Guy & David Beale, 2007. "Contested Resources: Unions, Employers, and the Adoption of New Work Practices in US and UK Telecommunications," British Journal of Industrial Relations, London School of Economics, vol. 45(3), pages 495-517, September.
    17. Michael White & Alex Bryson, 2019. "The Impact of High-Performance Work Systems on Employees: A Sectoral Comparison," DoQSS Working Papers 19-04, Quantitative Social Science - UCL Social Research Institute, University College London.
    18. Kilroy, Steven & Bosak, Janine & Flood, Patrick C. & Peccei, Riccardo, 2020. "Time to recover: The moderating role of psychological detachment in the link between perceptions of high-involvement work practices and burnout," Journal of Business Research, Elsevier, vol. 108(C), pages 52-61.
    19. Burdin, Gabriel & Kato, Takao, 2021. "Complementarity in Employee Participation Systems: International Evidence," IZA Discussion Papers 14694, Institute of Labor Economics (IZA).
    20. HAURET Laetitia & MARTIN Ludivine & OMRANI Nessrine & WILLIAMS Donald R., 2016. "Exposure, participation in human resource management practices and employee attitudes," LISER Working Paper Series 2016-16, Luxembourg Institute of Socio-Economic Research (LISER).

    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:sae:ecoind:v:43:y:2022:i:2:p:853-876. 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: SAGE Publications (email available below). General contact details of provider: http://www.ekhist.uu.se/english.htm .

    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.