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The Determinants of Firm Performance: Unions, Works Councils, and Employee Involvement/High Performance Work Practices

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  • Addison, John T.

    () (University of South Carolina)

Abstract

Drawing on evidence from the United States and Germany, this paper offers a survey of the effects of worker representation (in unions and works councils) and innovative work practices on firm performance. The focus is on the growing links between these two historically separate literatures. The interaction between worker representation and high performance work practices provides a practical means of peering inside the black box of collective voice, even if there is as yet no well-determined hierarchy for productivity performance and certainly no blue-print for the future of unions.

Suggested Citation

  • Addison, John T., 2005. "The Determinants of Firm Performance: Unions, Works Councils, and Employee Involvement/High Performance Work Practices," IZA Discussion Papers 1620, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp1620
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    Cited by:

    1. Fakhfakh F. & Perotin V. & Gago M., 2009. "Productivity, Capital and Labor in Labor-Managed and Conventional Firms," Working Papers ERMES 0910, ERMES, University Paris 2.
    2. Gilbert Cette & Nicolas Dromel & Rémy Lecat, 2013. "Labour Relations Quality and Productivity: An Empirical Analysis on French Firms," Review of Economics and Institutions, Università di Perugia, vol. 4(2).
    3. John T. Addison & Clive R. Belfield, 2008. "The Determinants of Performance Appraisal Systems: A Note (Do Brown and Heywood's Results for Australia Hold Up for Britain?)," British Journal of Industrial Relations, London School of Economics, vol. 46(3), pages 521-531, September.
    4. Felix R. FitzRoy & Michael A. Nolan, 2005. "Value of Work: Bargaining, job-satisfaction, and taxation in a simple GE model," Discussion Paper Series, Department of Economics 200515, Department of Economics, University of St. Andrews.
    5. John T. Addison & Paulino Teixeira, 2009. "Are Good Industrial Relations Good for the Economy?," German Economic Review, Verein für Socialpolitik, vol. 10, pages 253-269, August.
    6. Fibla Gasparín, Ma. Teresa, 2010. "Productivity in southern European small firms: When and how work organization complements process innovation," Working Papers 2072/179600, Universitat Rovira i Virgili, Department of Economics.
    7. Fathi Fakhfakh & Virginie Pérotin & Andrew Robinson, 2011. "Workplace Change and Productivity: Does Employee Voice Make a Difference?," Chapters,in: The Role of Collective Bargaining in the Global Economy, chapter 5 Edward Elgar Publishing.
    8. Stefan Bauernschuster & Oliver Falck & Stephan Heblich, 2008. "The Impact of Continuous Training on a Firm’s Innovations," CESifo Working Paper Series 2258, CESifo Group Munich.
    9. John T. Addison & Paulino Teixeira, 2006. "Does the Quality of Industrial Relations Matter for the Macro Economy? A Cross-Country Analysis Using Strikes Data," GEMF Working Papers 2006-02, GEMF, Faculty of Economics, University of Coimbra.
    10. A. van den Berg & Y.K. Grift & A. van Witteloostuijn, 2009. "The impact of Dutch works councils according to managers," Working Papers 09-14, Utrecht School of Economics.
    11. repec:rim:rimwps:28-07 is not listed on IDEAS
    12. Bruce Kaufman, 2014. "Explaining Breadth and Depth of Employee Voice across Firms: A Voice Factor Demand Model," Journal of Labor Research, Springer, vol. 35(3), pages 296-319, September.
    13. repec:hal:journl:halshs-00721296 is not listed on IDEAS
    14. Davide Antonioli & Paolo Pini, 2014. "Europe and Italy: Expansionary Austerity, Expansionary Precariousness and the Italian Jobs Act," Working Papers 2014153, University of Ferrara, Department of Economics.
    15. A. van den Berg & Y.K. Grift & A. van Witteloostuijn, 2008. "Works councils and organizational performance : The role of top managers’ and works councils’ attitudes in bad vis-à -vis good times," Working Papers 08-14, Utrecht School of Economics.
    16. Stefan Bauernschuster & Oliver Falck & Stephan Heblich, 2008. "The Impact of Continuous Training on a Firm’s Innovations," Economics of Education Working Paper Series 0024, University of Zurich, Department of Business Administration (IBW).
    17. Arvanitis, Spyros & Loukis, Euripidis N., 2009. "Information and communication technologies, human capital, workplace organization and labour productivity: A comparative study based on firm-level data for Greece and Switzerland," Information Economics and Policy, Elsevier, vol. 21(1), pages 43-61, February.

    More about this item

    Keywords

    firm/establishment performance; worker representation; employee involvement mechanisms; innovative work practices; training;

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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