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“High performance” work practices, decentralization, and profitability: evidence from panel data -super-†

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  • Massimo G. Colombo
  • Marco Delmastro
  • Larissa Rabbiosi

Abstract

The aim of this article is to test the effects on firm profitability of the adoption of both “high performance” work practices (HPWPs) and changes in organizational design relating to the depth of the corporate hierarchy and the allocation of decision authority. For this purpose, we resort to panel estimates based on a longitudinal data set that includes information relating to 109 Italian manufacturing single-plant firms observed in the 1990s during 7 years. The econometric results show that the adoption of HPWPs leads to better performances, especially when it is associated with the delegation of decision authority downward the corporate hierarchy. Copyright 2007 , Oxford University Press.

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  • Massimo G. Colombo & Marco Delmastro & Larissa Rabbiosi, 2007. "“High performance” work practices, decentralization, and profitability: evidence from panel data -super-†," Industrial and Corporate Change, Oxford University Press, vol. 16(6), pages 1037-1067, December.
  • Handle: RePEc:oup:indcch:v:16:y:2007:i:6:p:1037-1067
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    File URL: http://hdl.handle.net/10.1093/icc/dtm031
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    Cited by:

    1. repec:wsi:ijimxx:v:21:y:2017:i:01:n:s1363919617500104 is not listed on IDEAS
    2. Annalisa Cristini & Dario Pozzoli, 2010. "Workplace practices and firm performance in manufacturing: A comparative study of Italy and Britain," International Journal of Manpower, Emerald Group Publishing, vol. 31(7), pages 818-842, October.
    3. Arnaldo Camuffo & Fabrizio Gerli, 2012. "What do lean managers do? Modeling management behaviors in lean production environments," Working Papers 13, Department of Management, Università Ca' Foscari Venezia.

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