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Trust-Based Work Time and Innovation: Evidence from Firm-Level Data

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  • Olivier N. Godart
  • Holger Görg
  • Aoife Hanley

Abstract

The authors explore whether the introduction of trust-based working hours is related to the subsequent innovation performance of firms. Based on a panel data set of German establishments, the study uses a propensity score matching approach that considers only firms that did not use trust-based work contracts initially. Results show that firms that adopt such contracts tend to be 12 to 15% more likely to improve products and 6 to 7% more likely to undertake process innovation. These results hold when controlling for another form of flexible working-time arrangement, namely working-time accounts. Thus, the positive relationship between the adoption of trust-based working hours and innovation seems to be driven by the degree of employee control and self-management over working time, rather than by merely allowing working-time flexibility.

Suggested Citation

  • Olivier N. Godart & Holger Görg & Aoife Hanley, 2017. "Trust-Based Work Time and Innovation: Evidence from Firm-Level Data," ILR Review, Cornell University, ILR School, vol. 70(4), pages 894-918, August.
    • Handle: RePEc:sae:ilrrev:v:70:y:2017:i:4:p:894-918
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    Cited by:

    1. García-Vega, María & Huergo, Elena, 2017. "Trust and technology transfers," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 92-104.
    2. Hani Al-Dmour & Rima Al Hasan & Motasem Thneibat & Ra’ed Masa’deh & Wafa Alkhadra & Rand Al-Dmour & Ali Alalwan, 2023. "Integrated Model for the Factors Determining the Academic’s Remote Working Productivity and Engagement: Empirical Study," SAGE Open, , vol. 13(3), pages 21582440231, August.
    3. Viete, Steffen & Erdsiek, Daniel, 2020. "Mobile Information Technologies and Firm Performance: The Role of Employee Autonomy," Information Economics and Policy, Elsevier, vol. 51(C).
    4. Wanger, Susanne & Zapf, Ines, 2018. "For better or worse? : How more flexibility in working time arrangements and fatherhood affect men's working hours in Germany," IAB-Discussion Paper 201809, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Viete, Steffen & Erdsiek, Daniel, 2018. "Trust-based work time and the productivity effects of mobile information technologies in the workplace," ZEW Discussion Papers 18-013, ZEW - Leibniz Centre for European Economic Research.

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