Delayering and Firm Performance: Evidence from Swiss firm-level Data
The past decades witnessed a broad trend towards flatter organizations with less hierarchical layers. A reduction of the number of management levels in a corpora- tion can have both positive and negative effects on firm performance with the net effect being theoretically unclear ex ante. The present study uses a nationally representative data set of firms in Switzerland and empirically examines the di- rect performance effects of delayering. Applying ordinary least squares regressions and propensity score matching, this study finds that delayering significantly increases subsequent firm performance. It can be concluded that flatter hierarchical structures seem to enable firms to better realize their competitive advantage in today's fast moving and knowledge-intensive market environment.
|Date of creation:||2011|
|Date of revision:|
|Contact details of provider:|| Postal: Peter-Merian-Weg 6, Postfach, CH-4002 Basel|
Web page: http://wwz.unibas.ch
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Christian Pfeifer, 2009. "Homogene und heterogene Teilnahmeeffekte des Hamburger Kombilohnmodells: Ein Verfahrensvergleich von Propensity Score Matching und linearer Regression," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer;Deutsche Statistische Gesellschaft - German Statistical Society, vol. 3(1), pages 41-65, June.
- Craig R. Littler & Retha Wiesner & Richard Dunford, 2003. "The Dynamics of Delayering: Changing Management Structures in Three Countries," Journal of Management Studies, Wiley Blackwell, vol. 40(2), pages 225-256, 03.
- Massimo G. Colombo & Marco Delmastro, 2002. "The Determinants of Organizational Change and Structural Inertia: Technological and Organizational Factors," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 11(4), pages 595-635, December.
- Daron Acemoglu & Philippe Aghion & Claire Lelarge & John Van Reenen & Fabrizio Zilibotti, 2007.
"Technology, Information, and the Decentralization of the Firm,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 122(4), pages 1759-1799.
- Zilibotti, Fabrizio & Van Reenen, John & Lelarge, Claire & Aghion, Philippe & Acemoglu, Daron, 2007. "Technology, Information, and the Decentralization of the Firm," Scholarly Articles 4481506, Harvard University Department of Economics.
- Acemoglu, Daron & Aghion, Philippe & Lelarge, Claire & Van Reenen, John & Zilibotti, Fabrizio, 2006. "Technology, Information and the Decentralization of the Firm," CEPR Discussion Papers 5678, C.E.P.R. Discussion Papers.
- Daron Acemoglu & Philippe Aghion & Claire Lelarge & John Van Reenen & Fabrizio Zilibotti, 2006. "Technology, information and the decentralization of the firm," LSE Research Online Documents on Economics 778, London School of Economics and Political Science, LSE Library.
- Daron Acemoglu & Philippe Aghion & Claire Lelarge & John Van Reenen & Fabrizio Zilibotti, 2006. "Technology, Information and the Decentralization of the Firm," CEP Discussion Papers dp0722, Centre for Economic Performance, LSE.
- Daron Acemoglu & Philippe Aghion & Claire Lelarge & John Van Reenen & Fabrizio Zilibotti, 2006. "Technology, Information and the Decentralization of the Firm," NBER Working Papers 12206, National Bureau of Economic Research, Inc.
- D, Acemoglu & Philippe Aghion & Claire Lelarge & John Van Reenen & Fabrizzio Zilibotti, 2006. "Technology, Information and the Decentralization of the Firm," Working Papers 2006-12, Centre de Recherche en Economie et Statistique.
- Lazear, Edward P & Rosen, Sherwin, 1981.
"Rank-Order Tournaments as Optimum Labor Contracts,"
Journal of Political Economy,
University of Chicago Press, vol. 89(5), pages 841-64, October.
- Grit Muehler & Michael Beckmann & Bernd Schauenberg, 2007.
"The returns to continuous training in Germany: new evidence from propensity score matching estimators,"
Review of Managerial Science,
Springer, vol. 1(3), pages 209-235, November.
- Muehler, Grit & Beckmann, Michael & Schauenberg, Bernd, 2007. "The Returns to Continuous Training in Germany: New Evidence from Propensity Score Matching Estimators," ZEW Discussion Papers 07-048, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Michael Beckmann & Grit Muehler & Bernd Schauenberg, 2007. "The Returns to Continuous Training in Germany: New Evidence from Propensity Score Matching Estimators," Working papers 2007/04, Faculty of Business and Economics - University of Basel.
- White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
- Caroli, Eve & Van Reenen, John, 1999.
"Skill biased organizational change? Evidence from a panel of British and French establishments,"
CEPREMAP Working Papers (Couverture Orange)
- Eve Caroli & John Van Reenen, 2001. "Skill-Biased Organizational Change? Evidence from A Panel of British and French Establishments," The Quarterly Journal of Economics, Oxford University Press, vol. 116(4), pages 1449-1492.
- Cristini Annalisa & Gaj Alessandro & Labory Sandrine & Leoni Riccardo, 2003. "Flat Hierarchical Structure, Bundles of New Work Practices and Firm Performance," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 313.
- Raghuram Rajan & Julie Wulf, 2003.
"The Flattening Firm: Evidence from Panel Data on the Changing Nature of Corporate Hierarchies,"
NBER Working Papers
9633, National Bureau of Economic Research, Inc.
- Raghuram G. Rajan & Julie Wulf, 2006. "The Flattening Firm: Evidence from Panel Data on the Changing Nature of Corporate Hierarchies," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 759-773, November.
- James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Oxford University Press, vol. 64(4), pages 605-654.
- Colombo, Massimo G. & Delmastro, Marco, 1999. "Some stylized facts on organization and its evolution," Journal of Economic Behavior & Organization, Elsevier, vol. 40(3), pages 255-274, November.
- Jeffrey Smith & Petra Todd, 2003.
"Does Matching Overcome Lalonde's Critique of Nonexperimental Estimators?,"
University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers
20035, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
- A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
- Bauer, Thomas K. & Bender, Stefan, 2001. "Flexible Work Systems and the Structure of Wages: Evidence from Matched Employer-Employee Data," IZA Discussion Papers 353, Institute for the Study of Labor (IZA).
- Alberto Abadie & Guido W. Imbens, 2002. "Simple and Bias-Corrected Matching Estimators for Average Treatment Effects," NBER Technical Working Papers 0283, National Bureau of Economic Research, Inc.
- Augurzky, Boris & Schmidt, Christoph M., 2001. "The Propensity Score: A Means to An End," IZA Discussion Papers 271, Institute for the Study of Labor (IZA).
- Alberto Abadie & David Drukker & Jane Leber Herr & Guido W. Imbens, 2004. "Implementing matching estimators for average treatment effects in Stata," Stata Journal, StataCorp LP, vol. 4(3), pages 290-311, September.
- John DiNardo & Justin L. Tobias, 2001.
"Nonparametric Density and Regression Estimation,"
Journal of Economic Perspectives,
American Economic Association, vol. 15(4), pages 11-28, Fall.
- James J. Heckman & Hidehiko Ichimura & Petra Todd, 1998. "Matching As An Econometric Evaluation Estimator," Review of Economic Studies, Oxford University Press, vol. 65(2), pages 261-294.
- repec:dau:papers:123456789/10093 is not listed on IDEAS
- Nikolowa, Radoslawa, 2010. "Supply of skilled labour and organizational change," Labour Economics, Elsevier, vol. 17(3), pages 514-522, June.
- Leo McCann & Jonathan Morris & John Hassard, 2008. "Normalized Intensity: The New Labour Process of Middle Management," Journal of Management Studies, Wiley Blackwell, vol. 45(2), pages 343-371, 03.
- Bresnahan, Timothy F., 1989. "Empirical studies of industries with market power," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 17, pages 1011-1057 Elsevier.
When requesting a correction, please mention this item's handle: RePEc:bsl:wpaper:2011/02. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (WWZ)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.