Market Characteristics, Intra-Firm Coordination, and the Choice of Human Resource Management Systems: Evidence from New Japanese Data
AbstractThis paper explores theoretically and empirically potentially important yet often-neglected linkage between task coordination within the organization and the structure of organization and bundling of HRMPs (Human Resource Management Practices). In so doing, we also provide fresh insights on the interplay between the firm’s technological and output market characteristics and its choice of HRMP system. We begin with constructing a team-theoretic model and derive three task coordination modes: vertical control, horizontal coordination, and hybrid coordination. The model provides rich implications about complementarity involving task coordination modes, HRMPs, training and hiring, and management strategies, and illustrates how such complementarity is affected by the firm’s technological and output market conditions. Guided by the theoretical exploration, we analyze unique data from a new survey of Japanese firms which provide for the first time data on newer forms of HRMPs adopted by Japanese firms (such as cross-functional offline teams and self-managed online teams). One novel finding (which is consistent with the theory) is that the adoption of both self-managed online teams and cross-functional offline teams usually arises in firms with shop-floor committees while the introduction of cross-functional offline teams alone often takes place in firms with joint labor-management committees. We also confirm implications from our theory that firms in more competitive markets are more likely to adopt both types of teams while firms facing more erratic price movement tend not to adopt self-managed online teams.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3105.
Length: 53 pages
Date of creation: Oct 2007
Date of revision:
Publication status: published as 'Market characteristics, intra-firm coordination, and the choice of human resource management systems: Theory and evidence' in: Journal of Economic Behavior and Organization, 2011, 80 (3), 375-396 (lead article)
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Other versions of this item:
- Kato, Takao & Owan, Hideo, 2007. "Market Characteristics, Intra-Firm Coordination, and the Choice of Human Resource Management Systems: Evidence from New Japanese Data," Working Papers, University of Aarhus, Aarhus School of Business, Department of Economics 07-10, University of Aarhus, Aarhus School of Business, Department of Economics.
- Kato, Takao & Owan, Hideo, 2007. "Market Characteristics, Intra-Firm Coordination, and the Choice of Human Resource Management Systems: Evidence from New Japanese Data," Working Papers, Department of Economics, Colgate University 104-25, Department of Economics, Colgate University.
- M5 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics
- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
- J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
- D2 - Microeconomics - - Production and Organizations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-11-10 (All new papers)
- NEP-BEC-2007-11-10 (Business Economics)
- NEP-HRM-2007-11-10 (Human Capital & Human Resource Management)
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"Two Perspectives on Multiskilling and Product Market Volatility,"
23089, University Library of Munich, Germany.
- DeVaro, Jed & Farnham, Martin, 2011. "Two perspectives on multiskilling and product-market volatility," Labour Economics, Elsevier, Elsevier, vol. 18(6), pages 862-871.
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