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Efficiency, productivity and employee relations in French equipment manufacturing

Author

Listed:
  • Chris Doucouliagos
  • Patrice Laroche

    (CEREFIGE)

Abstract

The impact of employee relations on performance has received much attention. Theory predicts that employee relations will impact on efficiency as well as productivity, yet researchers usually assume a production process that is fully efficient. In this paper, the stochastic production frontier framework is used to explore simultaneously the impact of employee relations on efficiency as well as productivity, in a sample of French equipment manufacturing firms. The results show that employee relations variables are important to the performance of the French equipment manufacturing industry. Union presence tends to have a negative impact on both efficiency and productivity, but this is reversed for firms that adopt many HRM practices. The existence of multiple unions increases productivity but not efficiency, while HRM practices improve both efficiency and productivity.

Suggested Citation

  • Chris Doucouliagos & Patrice Laroche, 2002. "Efficiency, productivity and employee relations in French equipment manufacturing," Cahiers du CEREFIGE 0203, CEREFIGE (Centre Europeen de Recherche en Economie Financiere et Gestion des Entreprises), Universite de Lorraine, revised 2002.
    • Handle: RePEc:fie:wpaper:0203
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    File URL: http://www.univ-nancy2.fr/CEREFIGE/realisations/cahiers/cahier2002/laroche02-03.pdf
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    Cited by:

    1. S. Dobbelaere, 2003. "Joint Estimation of Price-Cost Margins and Union Bargaining Power for Belgian Manufacturing," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/171, Ghent University, Faculty of Economics and Business Administration.

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