Trust-Based Working Time and Organizational Performance: Evidence from German Establishment-Level Panel Data
AbstractThis paper empirically examines the impact of trust-based working time on firm performance using panel data from German establishments. Trust-based working time is a human resource management practice that involves a high degree of worker autonomy in terms of scheduling individual working time. From the theoretical viewpoint, trust-based working time may affect worker motivation positively as well as negatively. Therefore, at the establishment level the performance effects of trust-based working time remain an open question. The analysis shows that both establishment productivity and profitability increase with the diffusion of trust-based working time. Referring only to establishments with trust-based working time arrangements, both performance effects are estimated at about 1-2 percent, while in the full sample both per- formance effects are stronger ranging between about 2.5 and 5 percent.
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Bibliographic InfoPaper provided by Faculty of Business and Economics - University of Basel in its series Working papers with number 2011/13.
Date of creation: 2011
Date of revision:
Trust-based working time; working time flexibility; firm performance;
Find related papers by JEL classification:
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
- M50 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-01-10 (All new papers)
- NEP-BEC-2012-01-10 (Business Economics)
- NEP-CSE-2012-01-10 (Economics of Strategic Management)
- NEP-EFF-2012-01-10 (Efficiency & Productivity)
- NEP-HRM-2012-01-10 (Human Capital & Human Resource Management)
- NEP-KNM-2012-01-10 (Knowledge Management & Knowledge Economy)
- NEP-LMA-2012-01-10 (Labor Markets - Supply, Demand, & Wages)
- NEP-SOC-2012-01-10 (Social Norms & Social Capital)
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