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

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  • Godart, Olivier

    (Kiel Institute for the World Economy)

  • Görg, Holger

    (Kiel Institute for the World Economy)

  • Hanley, Aoife

    (Kiel Institute for the World Economy)

Abstract

We explore whether the introduction of trust based working hours is related to the subsequent innovation performance of firms. Employing a panel data set of over 5,000 German establishments, we implement a propensity score matching approach where we only consider firms that did not use trust based work contracts initially. Our results show that firms which adopt such contracts tend to be between 11 to 14 percent more likely to improve products. These results hold when we control for another form of flexible time work arrangements, 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 control and self-management over working days, rather than by merely allowing time flexibility.

Suggested Citation

  • Godart, Olivier & Görg, Holger & Hanley, Aoife, 2014. "Trust-Based Work-Time and Product Improvements: Evidence from Firm Level Data," IZA Discussion Papers 8097, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8097
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    Cited by:

    1. Miltiadis Staboulis, 2019. "Flexible Forms of Employment Integration. Assessing the Implementation of Pilot Projects Promoting Flexible Arrangements: The Case of Cyprus," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 17(2), pages 221-238.
    2. Viete, Steffen & Erdsiek, Daniel, 2015. "Mobile information and communication technologies, flexible work organization and labor productivity: Firm-level evidence," ZEW Discussion Papers 15-087, ZEW - Leibniz Centre for European Economic Research.
    3. Görg, Holger & Hanley, Aoife, 2017. "Globalization: Implications for firms in Germany," Working Papers 04/2017, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.
    4. Bertschek, Irene & Niebel, Thomas, 2016. "Mobile and more productive? Firm-level evidence on the productivity effects of mobile internet use," Telecommunications Policy, Elsevier, vol. 40(9), pages 888-898.
    5. 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].
    6. Będzik, Beata & Gołąb, Sylwia, 2020. "Selected Determinants of Innovation Potential in The Agricultural Sector in The Visegrad Countries," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 311266, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    7. 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.
    8. García-Vega, María & Huergo, Elena, 2017. "Trust and technology transfers," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 92-104.
    9. Beckmann, Michael, 2016. "Self-managed working time and firm performance: Microeconometric evidence," Working papers 2016/01, Faculty of Business and Economics - University of Basel.
    10. Beckmann, Michael, 2016. "Self-managed working time and firm performance: Microeconometric evidence," VfS Annual Conference 2016 (Augsburg): Demographic Change 145623, Verein für Socialpolitik / German Economic Association.
    11. Zapf, Ines & Weber, Enzo, 2017. "The role of employer, job and employee characteristics for flexible working time : An empirical analysis of overtime work and flexible working hours' arrangements," IAB-Discussion Paper 201704, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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    More about this item

    Keywords

    trust based work time; innovation; firm performance;
    All these keywords.

    JEL classification:

    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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