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New Workplace Practices and Firm Performance: A Comparative Study of Italy and Britain

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Author Info

  • Cristini, Annalisa

    ()
    (Department of Economics)

  • Pozzoli, Dario

    ()
    (Department of Economics, Aarhus School of Business)

Abstract

Using data from the 2004 Workplace Employee Relations Survey on British establishments and two surveys on manufacturing firms located in the North of Italy, we look at the diffusion of new workplace practices in the two countries and at their impact on the firm's value added. We find that the adoption of innovation practices has spread substantially more across the British manufacturing firms than across the Italian ones; however our results also indicate that the practices' association with the firms' VA is much lower in Britain than in Italy. The counterfactual analysis shows that had the Italian workplaces the same characteristics of the British ones, in terms of diffusion of practices, capital intensity and skills, their average predicted value added would triplicate. On the other hand, were the Italian establishments to move and operate in the British context, their performance would improve very modestly. For the British establishments, we also investigate whether management practices improve job satisfaction.

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Bibliographic Info

Paper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number 08-9.

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Length: 47 pages
Date of creation: 01 May 2008
Date of revision:
Handle: RePEc:hhs:aareco:2008_009

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Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Phone: +45 89 486396
Fax: +45 8615 5175
Web page: http://www.asb.dk/departments/nat.aspx
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Keywords: Workplace practices; Financial Performance; Italy; UK;

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References

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  1. Sandra E. Black & Lisa M. Lynch, 2001. "What's driving the new economy? The benefits of workplace innovation," Staff Reports 118, Federal Reserve Bank of New York.
  2. Djankov, Simeon & La Porta, Rafael & Shleifer, Andrei & Lopez de Silanes, Florencio, 2001. "The regulation of entry," Policy Research Working Paper Series 2661, The World Bank.
  3. Sandra E. Black & Lisa M. Lynch, 1997. "How to Compete: The Impact of Workplace Practices and Information Technology on Productivity," NBER Working Papers 6120, National Bureau of Economic Research, Inc.
  4. Bertola, Giuseppe, 1990. "Job security, employment and wages," European Economic Review, Elsevier, vol. 34(4), pages 851-879, June.
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  6. Jeffrey B. Arthur, 1992. "The link between business strategy and industrial relations systems in American steel minimills," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 45(3), pages 488-506, April.
  7. Clark, A.E., 1995. "Job Satisfaction and Gender: Why Are Women so Happy at Work?," DELTA Working Papers 95-10, DELTA (Ecole normale supérieure).
  8. Lazear, Edward P, 1990. "Job Security Provisions and Employment," The Quarterly Journal of Economics, MIT Press, vol. 105(3), pages 699-726, August.
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  12. repec:rie:review:v:8:y:2003:i:2:n:7 is not listed on IDEAS
  13. Keith A. Bender & John S. Heywood, 2006. "Job Satisfaction Of The Highly Educated: The Role Of Gender, Academic Tenure, And Earnings," Scottish Journal of Political Economy, Scottish Economic Society, vol. 53(2), pages 253-279, 05.
  14. Giuseppe Nicoletti & Stefano Scarpetta & Olivier Boylaud, 2000. "Summary Indicators of Product Market Regulation with an Extension to Employment Protection Legislation," OECD Economics Department Working Papers 226, OECD Publishing.
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  16. Groot, Wim & Maassen van den Brink, Henriette, 1999. "Job satisfaction and preference drift1," Economics Letters, Elsevier, vol. 63(3), pages 363-367, June.
  17. Cristini Annalisa & Gaj Alessandro & Labory Sandrine & Leoni Riccardo, 2003. "Flat Hierarchical Structure, Bundles of New Work Practices and Firm Performance," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 313.
  18. Nathalie Greenan & Jacques Mairesse, 1999. "Organizational Change in French Manufacturing: What Do We Learn From Firm Representatives and From Their Employees?," NBER Working Papers 7285, National Bureau of Economic Research, Inc.
  19. Paul Osterman, 1994. "How common is workplace transformation and who adopts it?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 47(2), pages 173-188, January.
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