IDEAS home Printed from https://ideas.repec.org/p/ris/aiccon/2013_130.html
   My bibliography  Save this paper

From the Neoliberal to the Participatory Firm

Author

Listed:
  • Tortia, Ermanno

    () (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)

  • Knox Haly, Martha

    () (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)

  • Jensen, Anthony

    () (Associazione Italiana per la Cultura della Cooperazione e del Non Profit)

Abstract

The current paper is a comparative analysis of employee participation in organisational governance in Italy and Australia. Cultural values determine the expression of institutional configurations, and to this end, we have adopted Hall and Soskice’s Varieties of Capitalism and the Theory of the Firm as informing theoretical frameworks for our comparative study. Hall and Soskice represent Italy as a hybrid economy, and Australia as a liberal market lead economy. The main theoretical contribution of our paper is twofold. First, we hypothesize that the Australian Liberal Market Economic Configuration offers fewer opportunities for employee participation in organisational governance. Second, we critique mainstream Theory of the Firm on the ground that it is inadequate in explaining the phenomenon of employee participation across both economic configurations. We tested our hypotheses on some crucial institutional dimensions: (i) the role of the industrial relations system; (ii) the nature of corporate law; (iii) and the relative diffusion of different organisational forms with participative vis à vis exclusionary governance (although we acknowledge that participatory organisational forms are rare in both Italy and Australia) . We find support for differential facilitation of employee participation across Australian LME and Italian Hybrid economies.

Suggested Citation

  • Tortia, Ermanno & Knox Haly, Martha & Jensen, Anthony, 2013. "From the Neoliberal to the Participatory Firm," AICCON Working Papers 130-2013, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
  • Handle: RePEc:ris:aiccon:2013_130
    as

    Download full text from publisher

    File URL: http://www.aiccon.it/pubblicazione/130-from-the-neoliberal-to-the-participatory-firm/
    File Function: Full text
    Download Restriction: no

    References listed on IDEAS

    as
    1. Alchian, Armen A & Demsetz, Harold, 1972. "Production , Information Costs, and Economic Organization," American Economic Review, American Economic Association, vol. 62(5), pages 777-795, December.
    2. Albanese, Marina & Navarra, Cecilia & Tortia, Ermanno C., 2015. "Employer moral hazard and wage rigidity. The case of worker owned and investor owned firms," International Review of Law and Economics, Elsevier, vol. 43(C), pages 227-237.
    3. Thomas Dohmen & Armin Falk, 2011. "Performance Pay and Multidimensional Sorting: Productivity, Preferences, and Gender," American Economic Review, American Economic Association, vol. 101(2), pages 556-590, April.
    4. Edward P. Lazear & Kathryn L. Shaw, 2007. "Personnel Economics: The Economist's View of Human Resources," Journal of Economic Perspectives, American Economic Association, vol. 21(4), pages 91-114, Fall.
    5. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    6. SARCHIZIAN Sergiu, 2010. "How Can We Measure the Corporate Governance ?," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 168-172, May.
    7. Cecilia Navarra & Ermanno Tortia, 2014. "Employer Moral Hazard, Wage Rigidity, and Worker Cooperatives: A Theoretical Appraisal," Journal of Economic Issues, Taylor & Francis Journals, vol. 48(3), pages 707-726.
    8. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
    9. Ermanno C. Tortia, 2011. "The firm as a common. The case of accumulation and use of common resources in mutual benefit organizations," Department of Economics Working Papers 1112, Department of Economics, University of Trento, Italia.
    10. Zhaoxia Li, 2010. "China's Corporate Governance," Chinese Economy, Taylor & Francis Journals, vol. 43(3), pages 77-102, May.
    11. Ostrom, Elinor & Basurto, Xavier, 2011. "Crafting analytical tools to study institutional change," Journal of Institutional Economics, Cambridge University Press, vol. 7(03), pages 317-343, September.
    12. Ben-Ner, Avner, 1988. "Comparative empirical observations on worker-owned and capitalist firms," International Journal of Industrial Organization, Elsevier, vol. 6(1), pages 7-31, March.
    13. Avner Ben-Ner & Matthew Ellman, 2013. "The contributions of behavioural economics to understanding and advancing the sustainability of worker cooperatives," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 2(1), pages 75-100, August.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    worker cooperatives; worker control; third sector; neo liberal firm; industrial relations; labour law; corporate law; Australia; Italy;

    JEL classification:

    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:aiccon:2013_130. 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: (Paolo Venturi). General contact details of provider: http://edirc.repec.org/data/aiccoea.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.