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Labour flexibility and innovation, complementary or concurrent strategies? A review of the literature

Author

Listed:
  • Stan De Spiegelaere
  • Guy Van Gyes
  • Geert Van Hootegem

Abstract

The European strategy for growth has a twofold aim: to become an innovative union and to enhance labour flexibility. Yet, few have addressed the question of whether these two strategies are compatible or concurrent. Through a review of the literature, this article addresses this question by focusing on different types of labour flexibility (functional, contractual and financial), and two types of innovation outcomes: employee-driven innovation (EDI) and organizational innovativeness. Using insights from different research traditions, sound evidence is found for a positive relation between different forms of functional flexibility and both EDI and organizational innovation. This is nevertheless not so for contractual and financial flexibility. Indications are found that these types of labour flexibility are potentially negative for both EDI and organizational innovation. Yet, trends in the European labour market and EU backed policies do not focus on enhancing functional flexibility, but rather aim to increase contractual and financial flexibility.

Suggested Citation

  • Stan De Spiegelaere & Guy Van Gyes & Geert Van Hootegem, 2014. "Labour flexibility and innovation, complementary or concurrent strategies? A review of the literature," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 35(4), pages 653-666, November.
    • Handle: RePEc:sae:ecoind:v:35:y:2014:i:4:p:653-666
    DOI: 10.1177/0143831X13492831
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    References listed on IDEAS

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    1. Haibo Zhou & Ronald Dekker & Alfred Kleinknecht, 2011. "Flexible labor and innovation performance: evidence from longitudinal firm-level data," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 20(3), pages 941-968, June.
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    Cited by:

    1. Gopal Krishna Roy & Amaresh Dubey, 2023. "Does Higher Labour Market Flexibility Discourage R&D? Firm-Level Evidence from India’s Organised Manufacturing," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 66(4), pages 1119-1130, December.
    2. Paul TY Preenen & Luc Dorenbosch & Edo Plantinga & Steven Dhondt, 2019. "The influence of task challenge on skill utilization, affective wellbeing and intrapreneurial behaviour," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 40(4), pages 954-975, November.
    3. Paul TY Preenen & Robert Vergeer & Karolus Kraan & Steven Dhondt, 2017. "Labour productivity and innovation performance: The importance of internal labour flexibility practices," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 38(2), pages 271-293, May.

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