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Reassessing the Impact of High Performance Workplaces

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  • Zwick, Thomas
  • Wolf, Elke

Abstract

High performance workplace practices were extolled as an efficient means to increase firm productivity. The empirical evidence is disputed, however. To assess the productivity effects of a broad variety of measures, we simultaneously account for both unobserved heterogeneity and endogeneity using establishment panel data for Germany. We show that increasing employee participation enhances firm productivity in Germany, whereas incentive systems do not foster productivity. Our results further indicate that firms with structural productivity problems tend to introduce organisational changes that increase employee participation whereas well performing firms are more likely to offer incentives.

Suggested Citation

  • Zwick, Thomas & Wolf, Elke, 2002. "Reassessing the Impact of High Performance Workplaces," ZEW Discussion Papers 02-07, ZEW - Leibniz Centre for European Economic Research.
  • Handle: RePEc:zbw:zewdip:890
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    Cited by:

    1. Nicola Matteucci & Mary O'Mahony & Catherine Robinson & Thomas Zwick, 2005. "Productivity, Workplace Performance And Ict: Industry And Firm‐Level Evidence For Europe And The Us," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(3), pages 359-386, July.
    2. John T. Addison & Paulino Teixeira & Lutz Bellmann, 2020. "Management Practices and Establishment Performance under Non-Union Workplace Representation," CESifo Working Paper Series 8599, CESifo.
    3. John Addison & Lutz Bellmann & Thorsten Schank & Paulino Teixeira, 2008. "The Demand for Labor: An Analysis Using Matched Employer–Employee Data from the German LIAB. Will the High Unskilled Worker Own-Wage Elasticity Please Stand Up?," Journal of Labor Research, Springer, vol. 29(2), pages 114-137, June.
    4. Addison, John T. & Schank, Thorsten & Schnabel, Claus & Wagner, Joachim, 2003. "German Works Councils in the Production Process," IZA Discussion Papers 812, Institute of Labor Economics (IZA).
    5. John T. Addison, 2005. "The Determinants Of Firm Performance: Unions, Works Councils, And Employee Involvement/High‐Performance Work Practices," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(3), pages 406-450, July.
    6. Bellmann, Lutz & Caliendo, Marco & Hujer, Reinhard & Radic, Dubravko, 2002. "Beschäftigungswirkungen technisch-organisatorischen Wandels : eine mikroökonometrische Analyse mit dem Linked IAB-Panel (Technological and organisational change and its effects on employment : a micro," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 35(4), pages 506-522.
    7. Beckmann, Michael & Hegedüs, Istvan, 2011. "Trust-based working time and organizational performance: evidence from German establishment-level panel data," Working papers 2011/13, Faculty of Business and Economics - University of Basel.
    8. Wolf, Elke & Heinze, Anja, 2007. "How to Limit Discrimination? Analyzing the Effects of Innovative Workplace Practices on Intra-Firm Gender Wage Gaps Using Linked Employer-Employee Data," ZEW Discussion Papers 07-077, ZEW - Leibniz Centre for European Economic Research.
    9. John T. Addison & Paulino Teixeira, 2020. "Management Practices, Worker Commitment, and Workplace Representation," CESifo Working Paper Series 8329, CESifo.
    10. Bellmann, Lutz & Caliendo, Marco & Hujer, Reinhard & Radic, Dubravko, 2002. "Beschäftigungswirkungen technisch-organisatorischen Wandels : eine mikroökonometrische Analyse mit dem Linked IAB-Panel (Technological and organisational change and its effects on employment : a micro," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 35(4), pages 506-522.
    11. Grip,Andries,de & Sieben,Inge, 2004. "The Effects of Human Resource Management on Workers' Wages and Firm Productivity," ROA Research Memorandum 001, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    12. 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.
    13. Hempell, Thomas, 2002. "What's Spurious, What's Real? Measuring the Productivity Impacts of ICT at the Firm-Level," ZEW Discussion Papers 02-42, ZEW - Leibniz Centre for European Economic Research.
    14. Lutz, Roman, 2005. "Produktivitätseffekte betrieblicher Zusatzleistungen (Productivity effects of employee benefits)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(1), pages 30-48.
    15. Kirchner, Stefan & Oppen, Maria & Bellmann, Lutz, 2008. "Zur gesellschaftlichen Einbettung von Organisationswandel : Einführungsdynamik dezentraler Organisationsstrukturen," IAB-Discussion Paper 200837, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    16. Andries de Grip & Inge Sieben, 2005. "The effects of human resource management on small firms' productivity and employees' wages," Applied Economics, Taylor & Francis Journals, vol. 37(9), pages 1047-1054.
    17. Kathryn Shaw, 2004. "The Human Resources Revolution: Is It a Productivity Driver?," NBER Chapters, in: Innovation Policy and the Economy, Volume 4, pages 69-114, National Bureau of Economic Research, Inc.
    18. John T. Addison & Claus Schnabel & Joachim Wagner, 2004. "The Course of Research into the Economic Consequences of German Works Councils," British Journal of Industrial Relations, London School of Economics, vol. 42(2), pages 255-281, June.
    19. Lutz, Roman, 2005. "Produktivitätseffekte betrieblicher Zusatzleistungen (Productivity effects of employee benefits)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(1), pages 30-48.
    20. Lutz, Roman, 2005. "Produktivitätseffekte betrieblicher Zusatzleistungen (Productivity effects of employee benefits)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(1), pages 30-48.
    21. Steffen Mueller, 2009. "The Productivity Effect of Non-Union Representation," Working Papers 074, Bavarian Graduate Program in Economics (BGPE).
    22. Wolf, Elke & Beblo, Miriam, 2004. "Does Work Time Flexibility Work? An Empirical Assessment of the Efficiency Effects for German Firms," ZEW Discussion Papers 04-47, ZEW - Leibniz Centre for European Economic Research.
    23. Spyros Arvanitis, 2005. "Computerization, workplace organization, skilled labour and firm productivity: Evidence for the Swiss business sector," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(4), pages 225-249.

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    More about this item

    Keywords

    high performance workplaces; microeconometric evaluation; firm productivity; panel regression;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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