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Innovation, Organizational Flexibility, and Performance

In: Innovative Management and Firm Performance

Author

Listed:
  • Angel Martínez-Sánchez
  • María-José Vela-Jiménez
  • Manuela Pérez-Pérez
  • Silvia Abella-Garcés

Abstract

In the past several years, the European Commission has opened up a dialogue and made recommendations concerning the requirements of flexibility in the labor markets of European countries with the aim of shaping new human resource management practices compatible with new forms of work organization (an initiative referred to as the “flexicurity strategy”). The ultimate goals of this dialogue and the research tied to it are, by improving firms’ innovation capacities, both to promote their competitiveness in a globalized world and to maintain the European social model. At the center of this drive is the “insider-outsider” model of the labor market according to which the work force is divided between incumbent employees whose positions are protected by labor turnover costs (the insiders) and entrants (with low turnover costs) and unemployed workers. The flexicurity strategy is aimed at reducing the divide between insiders and outsiders in the labor market so as to improve firms’ use of human capital.

Suggested Citation

  • Angel Martínez-Sánchez & María-José Vela-Jiménez & Manuela Pérez-Pérez & Silvia Abella-Garcés, 2014. "Innovation, Organizational Flexibility, and Performance," Palgrave Macmillan Books, in: Maja Levi Jakšić & Slađana Barjaktarović Rakočević & Milan Martić (ed.), Innovative Management and Firm Performance, chapter 12, pages 235-253, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-40222-6_12
    DOI: 10.1057/9781137402226_12
    as

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