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Endogenous organizational change and the expected demand for different skill groups

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  • Martin Falk

Abstract

Between 1993 and 1995, the majority of German firms in services introduced new organizational practices (OC), in particular total quality management systems, certified ISO 9000, lean administration, flatter hierarchies, delegation of authority and ICT-enabled organizational changes. This paper analyzes the impact of organizational change on employment expectations. A system of probit equations will be estimated by simulated MLE. To account for endogeneity of organizational change in the labour demand equations a selection equation explaining organizational change is added to the system of equations. The empirical results suggest that organizational change has a positive impact on expected employment for all skill groups except for unskilled labour. Employment effects are robust to endogeneity of organizational change. New ICT and the share of training expenditures are primary forces behind OC.

Suggested Citation

  • Martin Falk, 2002. "Endogenous organizational change and the expected demand for different skill groups," Applied Economics Letters, Taylor & Francis Journals, vol. 9(7), pages 419-423.
    • Handle: RePEc:taf:apeclt:v:9:y:2002:i:7:p:419-423
    DOI: 10.1080/13504850110088141
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    1. Lisa M. Lynch & Sandra E. Black, 1995. "Beyond the Incidence of Training: Evidence from a National Employers Survey," NBER Working Papers 5231, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Zhang, Shoucheng, 2022. "Education and society: an analysis of the relationship between technological development and knowledge transfer," MPRA Paper 115130, University Library of Munich, Germany.
    2. Darnall, Nicole & Henriques, Irene & Sadorsky, Perry, 2008. "Do environmental management systems improve business performance in an international setting?," Journal of International Management, Elsevier, vol. 14(4), pages 364-376, December.
    3. Pål Schøne, 2007. "Does increased international competition increase the need for training?," Applied Economics Letters, Taylor & Francis Journals, vol. 14(2), pages 151-155.
    4. Vera Ferrón Vílchez & Nicole Darnall, 2016. "Two are Better Than One: The Link Between Management Systems and Business Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 25(4), pages 221-240, May.
    5. Anna Giunta & Francesco Trivieri, 2007. "Understanding the determinants of information technology adoption: evidence from Italian manufacturing firms," Applied Economics, Taylor & Francis Journals, vol. 39(10), pages 1325-1334.
    6. Spyros Arvanitis & Euripidis N. Loukis, 2009. "Employee education, information and communication technology, workplace organization and trade," KOF Working papers 09-234, KOF Swiss Economic Institute, ETH Zurich.
    7. Yeung, Godfrey & Mok, Vincent, 2005. "What are the impacts of implementing ISOs on the competitiveness of manufacturing industry in China?," Journal of World Business, Elsevier, vol. 40(2), pages 139-157, May.
    8. Marco Cucculelli & Ivano Dileo & Marco Pini, 2022. "Filling the void of family leadership: institutional support to business model changes in the Italian Industry 4.0 experience," The Journal of Technology Transfer, Springer, vol. 47(1), pages 213-241, February.

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