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Adoption and Termination of Employee Involvement Programs

Author

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  • Wei Chi
  • Richard B. Freeman
  • Morris M. Kleiner

Abstract

This study uses a 10-year longitudinal database on U.S. manufacturing establishments to analyze the dynamics of the adoption and termination of employee involvement programs (EI). We show that firms' use of EI has not grown continuously, but rather introduce and terminate EI policies in ways that imply that the policies are complementary with each other and with other advanced human resource practices, seemingly moving toward an equilibrium distribution of EI policies. Using a Markov model, we estimate the long-run distribution of the number of EI programs in firms and find that adjustment to the steady-state distribution takes about 20 years.

Suggested Citation

  • Wei Chi & Richard B. Freeman & Morris M. Kleiner, 2007. "Adoption and Termination of Employee Involvement Programs," NBER Working Papers 12878, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:12878
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    References listed on IDEAS

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    1. David E. Guest & Jonathan Michie & Neil Conway & Maura Sheehan, 2003. "Human Resource Management and Corporate Performance in the UK," British Journal of Industrial Relations, London School of Economics, vol. 41(2), pages 291-314, June.
    2. Sandra E. Black & Lisa M. Lynch, 2005. "Measuring Organizational Capital in the New Economy," NBER Chapters,in: Measuring Capital in the New Economy, pages 205-236 National Bureau of Economic Research, Inc.
    3. Sandra E. Black & Lisa M. Lynch & Anya Krivelyova, 2003. "How workers fare when employers innovate," Working Paper Series 2003-22, Federal Reserve Bank of San Francisco.
    4. Larry W. Hunter & John Paul MacDuffie & Lorna Doucet, 2002. "What Makes Teams Take? Employee Reactions to Work Reforms," ILR Review, Cornell University, ILR School, vol. 55(3), pages 448-472, April.
    5. Ichniowski, Casey & Shaw, Kathryn & Prennushi, Giovanna, 1997. "The Effects of Human Resource Management Practices on Productivity: A Study of Steel Finishing Lines," American Economic Review, American Economic Association, vol. 87(3), pages 291-313, June.
    6. John Godard, 2004. "A Critical Assessment of the High-Performance Paradigm," British Journal of Industrial Relations, London School of Economics, vol. 42(2), pages 349-378, June.
    7. Adrienne E. Eaton, 1994. "The Survival of Employee Participation Programs in Unionized Settings," ILR Review, Cornell University, ILR School, vol. 47(3), pages 371-389, April.
    8. Morris M. Kleiner & Richard B. Freeman, 2000. "Who Benefits Most from Employee Involvement: Firms or Workers?," American Economic Review, American Economic Association, vol. 90(2), pages 219-223, May.
    9. Rosemary Batt & Alexander J.S. Colvin & Jeffrey Keefe, 2002. "Employee Voice, Human Resource Practices, and Quit Rates: Evidence from the Telecommunications Industry," ILR Review, Cornell University, ILR School, vol. 55(4), pages 573-594, July.
    10. repec:bin:bpeajo:v:26:y:1995:i:1995-3:p:1-65 is not listed on IDEAS
    11. repec:mes:challe:v:31:y:1988:i:4:p:56-58 is not listed on IDEAS
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    Cited by:

    1. Lynch, Lisa M., 2007. "The Adoption and Diffusion of Organizational Innovation: Evidence for the U.S. Economy," IZA Discussion Papers 2819, Institute for the Study of Labor (IZA).
    2. Lin, Hai-Fen & Su, Jing-Qin & Higgins, Angela, 2016. "How dynamic capabilities affect adoption of management innovations," Journal of Business Research, Elsevier, vol. 69(2), pages 862-876.
    3. Susan Helper & Morris M. Kleiner, 2009. "International Differences in Lean Production, Productivity, and Employee Attitudes," NBER Chapters,in: International Differences in the Business Practices and Productivity of Firms, pages 231-261 National Bureau of Economic Research, Inc.
    4. Ollo-López, Andrea & Bayo-Moriones, Alberto & Larraza-Kintana, Martín, 2011. "The impact of country-level factors on the use of new work practices," Journal of World Business, Elsevier, vol. 46(3), pages 394-403, July.
    5. Rand H. Al-Dmour & Steve Love, 2015. "Determinants of the implementation of HRIS applications in business organisations in Jordan," International Journal of Human Resources Development and Management, Inderscience Enterprises Ltd, vol. 15(1), pages 69-96.
    6. Kato, Takao & Owan, Hideo, 2011. "Market characteristics, intra-firm coordination, and the choice of human resource management systems: Theory and evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 80(3), pages 375-396.
    7. 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.

    More about this item

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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