IDEAS home Printed from https://ideas.repec.org/p/zbw/mpifgd/198.html
   My bibliography  Save this paper

Innovation and precarity: Workplace discourse in twenty-first century capitalism

Author

Listed:
  • Rothstein, Sidney A.

Abstract

This paper analyzes discourse in the workplace in order to explain puzzling patterns of precarity in twenty-first century capitalism. Tech workers' central role in digital transformation endows them with labor market power reflected by their high wages, but during economic downturns, when demand for their skills decreases, even they are vulnerable to downsizing. Comparing workers' responses to downsizing at two sites of an American tech firm, this paper shows how management disempowers workers by framing the employment relationship in a financial discourse. Disposing workers to believe that their jobs are threatened by market forces beyond their control, rather than by managers' decisions, this financial discourse undermines labor's established power resources by persuading workers that mobilizing will be ineffective in protecting their jobs. Relying on detailed case study evidence, this paper demonstrates the importance of discourse to explaining variation in worker power. It argues that the workplace should play a larger role in comparative political economy, particularly in explaining labor market outcomes related to digital transformation.

Suggested Citation

  • Rothstein, Sidney A., 2019. "Innovation and precarity: Workplace discourse in twenty-first century capitalism," MPIfG Discussion Paper 19/8, Max Planck Institute for the Study of Societies.
  • Handle: RePEc:zbw:mpifgd:198
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/203679/1/1677390417.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Laura Beth Nielsen & Robert L. Nelson & Ryon Lancaster, 2010. "Individual Justice or Collective Legal Mobilization? Employment Discrimination Litigation in the Post Civil Rights United States," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 7(2), pages 175-201, June.
    2. Ittner, Christopher D. & Lambert, Richard A. & Larcker, David F., 2003. "The structure and performance consequences of equity grants to employees of new economy firms," Journal of Accounting and Economics, Elsevier, vol. 34(1-3), pages 89-127, January.
    3. Robert Hickey & Sarosh Kuruvilla & Tashlin Lakhani, 2010. "No Panacea for Success: Member Activism, Organizing and Union Renewal," British Journal of Industrial Relations, London School of Economics, vol. 48(1), pages 53-83, March.
    4. Adcock, Robert & Collier, David, 2001. "Measurement Validity: A Shared Standard for Qualitative and Quantitative Research," American Political Science Review, Cambridge University Press, vol. 95(3), pages 529-546, September.
    5. James R. Faulconbridge & Daniel Muzio, 2009. "The financialization of large law firms: situated discourses and practices of reorganization," Journal of Economic Geography, Oxford University Press, vol. 9(5), pages 641-661, September.
    6. Herrigel, Gary, 2010. "Manufacturing Possibilities: Creative Action and Industrial Recomposition in the United States, Germany, and Japan," OUP Catalogue, Oxford University Press, number 9780199557738.
    7. Martin Kenney, 2011. "How venture capital became a component of the US National System of Innovation," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 20(6), pages 1677-1723, December.
    8. Martin,Cathie Jo & Swank,Duane, 2012. "The Political Construction of Business Interests," Cambridge Books, Cambridge University Press, number 9781107018662, September.
    9. March, James G. & Olsen, Johan P., 1983. "The New Institutionalism: Organizational Factors in Political Life," American Political Science Review, Cambridge University Press, vol. 78(3), pages 734-749, December.
    10. Harry C. Katz & Rosemary Batt & Jeffrey H. Keefe, 2003. "The Revitalization of the CWA: Integrating Collective Bargaining, Political Action, and Organizing," ILR Review, Cornell University, ILR School, vol. 56(4), pages 573-589, July.
    11. Lazonick William, 2009. "The New Economy Business Model and the Crisis of U.S. Capitalism," Capitalism and Society, De Gruyter, vol. 4(2), pages 1-70, October.
    12. Murphy, Kevin J., 2003. "Stock-based pay in new economy firms," Journal of Accounting and Economics, Elsevier, vol. 34(1-3), pages 129-147, January.
    13. Janice Fine, 2017. "Enforcing Labor Standards in Partnership with Civil Society: Can Co-enforcement Succeed Where the State Alone Has Failed?," Politics & Society, , vol. 45(3), pages 359-388, September.
    14. Oesch, Daniel, 2013. "Occupational Change in Europe: How Technology and Education Transform the Job Structure," OUP Catalogue, Oxford University Press, number 9780199680962.
    15. Christian Lévesque & Gregor Murray, 2013. "Renewing Union Narrative Resources: How Union Capabilities Make a Difference," British Journal of Industrial Relations, London School of Economics, vol. 51(4), pages 777-796, December.
    16. Richard M. Locke & Kathleen Thelen, 1995. "Apples and Oranges Revisited: Contextualized Comparisons and the Study of Comparative Labor Politics," Politics & Society, , vol. 23(3), pages 337-367, September.
    17. Martin,Cathie Jo & Swank,Duane, 2012. "The Political Construction of Business Interests," Cambridge Books, Cambridge University Press, number 9781107603646, September.
    18. Amable, Bruno, 2017. "Structural Crisis and Institutional Change in Modern Capitalism: French Capitalism in Transition," OUP Catalogue, Oxford University Press, number 9780198787815.
    19. Fred Block, 2008. "Swimming Against the Current: The Rise of a Hidden Developmental State in the United States," Politics & Society, , vol. 36(2), pages 169-206, June.
    20. Cédric Durand & Céline Baud, 2012. "Financialization, globalization and the making of profits by leading retailers," Post-Print halshs-00737045, HAL.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sidney A. Rothstein, 2022. "How workers mobilize in financializing firms: A theory of discursive opportunism," British Journal of Industrial Relations, London School of Economics, vol. 60(1), pages 57-77, March.
    2. Rothstein, Sidney A., 2020. "Toward a discursive approach to growth models: Social blocs in the politics of digital transformation," MPIfG Discussion Paper 20/8, Max Planck Institute for the Study of Societies.
    3. Stefan Thewissen & Olaf Vliet & Chen Wang, 2018. "Taking the Sector Seriously: Data, Developments, and Drivers of Intrasectoral Earnings Inequality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(3), pages 1023-1048, August.
    4. Bradon Ellem & Caleb Goods & Patricia Todd, 2020. "Rethinking Power, Strategy and Renewal: Members and Unions in Crisis," British Journal of Industrial Relations, London School of Economics, vol. 58(2), pages 424-446, June.
    5. Chris F. Wright, 2017. "Employer Organizations and Labour Immigration Policy in Australia and the United Kingdom: The Power of Political Salience and Social Institutional Legacies," British Journal of Industrial Relations, London School of Economics, vol. 55(2), pages 347-371, June.
    6. Jan Zabojnik, 2014. "Stock-based Compensation Plans And Employee Incentives," Working Paper 1325, Economics Department, Queen's University.
    7. Huang, Minjie & Kubick, Thomas R. & Tseng, Kevin, 2021. "Technology spillovers and the duration of executive compensation," Journal of Banking & Finance, Elsevier, vol. 131(C).
    8. Duane Swank, 2015. "The Political Foundations of Redistribution in Post-industrial Democracies," LIS Working papers 653, LIS Cross-National Data Center in Luxembourg.
    9. Hasegawa, Nobuhisa & Kim, Hyonok & Yasuda, Yukihiro, 2017. "The adoption of stock option plans and their effects on firm performance during Japan’s period of corporate governance reform," Journal of the Japanese and International Economies, Elsevier, vol. 44(C), pages 13-25.
    10. Kinderman, Daniel, 2014. "Challenging varieties of capitalism's account of business interests: The new social market initiative and German employers' quest for liberalization, 2000-2014," MPIfG Discussion Paper 14/16, Max Planck Institute for the Study of Societies.
    11. Bergman, Nittai K. & Jenter, Dirk, 2007. "Employee sentiment and stock option compensation," Journal of Financial Economics, Elsevier, vol. 84(3), pages 667-712, June.
    12. David Tsui & Marshall Vance, 2023. "Sorting Effects of Broad-Based Equity Compensation," Management Science, INFORMS, vol. 69(7), pages 4240-4258, July.
    13. Lowry, Michelle & Murphy, Kevin J., 2007. "Executive stock options and IPO underpricing," Journal of Financial Economics, Elsevier, vol. 85(1), pages 39-65, July.
    14. Ren, Siewan & Wright, Anna & Wyatt, Anne, 2012. "Stock option use by Australian IPOs," Journal of Contemporary Accounting and Economics, Elsevier, vol. 8(1), pages 1-22.
    15. Li, Donghui & Moshirian, Fariborz & Nguyen, Pascal & Tan, Liwen, 2007. "Corporate governance or globalization: What determines CEO compensation in China?," Research in International Business and Finance, Elsevier, vol. 21(1), pages 32-49, January.
    16. Steven Hegemann & Iuliana Ismailescu, 2017. "The Effect of FASB Statement No. 123R on Stock Repurchases: An Empirical Examination of Management Incentives," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 20(02), pages 1-31, June.
    17. João Vieito & Walayet Khan, 2012. "Executive compensation and gender: S&P 1500 listed firms," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 36(2), pages 371-399, April.
    18. Peter Fairbrother, 2015. "Rethinking trade unionism: Union renewal as transition," The Economic and Labour Relations Review, , vol. 26(4), pages 561-576, December.
    19. Giannetti, Mariassunta, 2011. "Serial CEO incentives and the structure of managerial contracts," Journal of Financial Intermediation, Elsevier, vol. 20(4), pages 633-662, October.
    20. Ole Henning Sørensen & Virginia Doellgast & Anders Bojesen, 2015. "Intermediary cooperative associations and the institutionalization of participative work practices: A case study in the Danish public sector," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 36(4), pages 701-725, November.

    More about this item

    Keywords

    capitalism; discourse; hegemony; knowledge economy; power; workers; Arbeitnehmer; betriebliche Diskurse; Hegemonie; Kapitalismus; Macht; Wissensökonomie;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:zbw:mpifgd:198. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/mpigfde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.