scholarly journals Trust as the cement in the employment relationship? The role of trust in different workplace employment relations regimes

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bernd Brandl

PurposeThis paper addresses the puzzle of why the same workplace employment relations regimes can lead to different performances and why different regimes can produce the same performance. It is argued that the incidence of mutual, and not necessarily unilateral, trust between the employee representation and the management accounts for these differences, as mutual trust fosters information sharing and helps to strike deals that are mutually beneficial. Against the background that the institutional and organizational characteristics of some workplace employment relations regimes also constitutes information sharing and joint decision making, the author further argues that mutual trust is a functional equivalent.Design/methodology/approachMethodologically, the article is international and cross-country comparative in nature and conducted on the basis of a unique, large and transnational comparable data set of the employment relationship at firm level in eleven countries.FindingsOur results show that strong mutual trust is associated with significantly higher incidences of increases in firm profitability, regardless of the workplace employment relations regime in which the firms are embedded.Practical implicationsThe results clearly indicate that trust between the employee representation and the management works as a functional equivalent to performance enhancing employment relations regimes. Therefore, some policy recommendations and imposed institutional reforms of employment relations regimes by the IMF and the European Central Bank in some countries are sub-optimal and might not have been necessary. Trust building initiatives between the employee representation and the management are therefore an alternative, which is less conflictual and could have the same effect on the performance of firms.Originality/valuePrevious analyses on differences in the performance effects of workplace employment relations regime concentrated almost exclusively on institutional factors. Factors that account for differences in the functioning of regimes such as in particular the role of trust were not considered before. Against this background, the originality of this analysis is that it clearly shows that it is not sufficient to consider only the institutional and organizational structure of regimes, but it is essential for a better understanding of the effects of the employment relationship to consider factors which account for the functioning of the regimes such as, in particular, trust.

2019 ◽  
Vol 57 (9) ◽  
pp. 2414-2435
Author(s):  
Wenge Zhang ◽  
Jun Li ◽  
Yiyuan Mai

Purpose The purpose of this paper is to examine the relationship between industry association membership and firm innovation in Chinese private ventures. A secondary objective is to investigate potential moderating effects of firm learning practices and founder characteristics on the above relationship, and to draw out implications for policymakers and practitioners. Design/methodology/approach The paper utilizes data from a sample of 567 Chinese entrepreneurial firms operating in 9 designated emerging industries. Hierarchical regression models were employed to analyze the effect of industry association membership on firm innovation, and the potential moderating effects. A 2SLS procedure was adopted to control for potential endogeneity issue. Supplemental analyses were conducted to ensure the robustness of the findings. Findings The paper provides empirical insights about how industry association membership, along with firm learning practice and founder leadership, affect firm innovation in Chinese private ventures in emerging industries. It suggests that industry association membership positively affects firm innovation. Further, there is a three-way interaction effect of industry association membership, learning practice and founder power on innovation. Research limitations/implications Due to the design of the data set, there are some limitations. First, the study only considered whether a firm belongs to an industry association, but not the nature of such membership (length, firm status in the association, etc.). Second, the cross-sectional design may limit the power of the study to make casual implications about the tested relationships. Practical implications The paper provides important practical implications for policymakers and entrepreneurs in China. In general, the results suggest that private ventures pursuing innovation in emerging industries can benefit from industry associations, and entrepreneurs shall actively engage in firm-level and personal-level learning. For policymakers, the study suggests that to foster innovation in an emerging industry, special attention shall be paid to building necessary institutional support to develop and to strengthen the role of industry association in the industry. Originality/value This paper fulfills an important gap in the literature in that it is one of the first, which investigates the role of the industry association in firm innovation, especially in a non-western context. This paper provides new insights into the role of industry association and firm innovation in an under-researched developing economy context.


2019 ◽  
Vol 31 (2) ◽  
pp. 306-329 ◽  
Author(s):  
Qun Wu ◽  
Kun Liao ◽  
Xiaodong Deng ◽  
Erika Marsillac

Purpose Previous literature tends to combine postponement and modularity or view them as parallel factors to achieve mass customization (MC) while ignoring the sequence of a firm to design and implement operations and supply chain strategy. Based on a customer-oriented strategy and theories of organizational information processing theory, three-dimensional (3D) concurrent engineering and resource dependency, the purpose of this paper is to propose a sequential model reflecting the sequence of practices as well as an overview picture for a firm to achieve MC. Design/methodology/approach The model links three company antecedents – postponement orientation, operational alignment and information sharing, to three company supply chain practices – product and process modularity and supplier segmentation. These practices, in turn, lead to the company’s MC capabilities. The proposed model is tested with a data set collected from automotive suppliers in China and in the USA. Structural equation modeling is used to analyze the data and test the model. Findings The results suggest that, for suppliers to achieve MC, postponement orientation and operational alignment are vital antecedents. The results also reveal the important responsibility and role of information sharing practices in coordinating suppliers’ modularity practices. Originality/value This research provides three findings that are of value to both academicians and practitioners of supply chain management. First, this study originally proposed and empirically tested that a postponement orientation is an antecedent of product and process modularity and supplier segmentation to achieve MC in the automotive sector, contrary to the traditional view of parallel relationships for both. Second, it developed and verified measures of operational alignment and supplier segmentation for future research use. Third, the vital role of information sharing to coordinate internal and external supply chain practices to achieve MC is empirically supported.


2015 ◽  
Vol 37 (6) ◽  
pp. 670-682 ◽  
Author(s):  
Gill Dix ◽  
Sir Brendan Barber

Purpose – The purpose of this paper is to provide an overview of the evolving role of the Advisory, Conciliation and Arbitration Service (Acas) across a 40-year period against a backdrop of changing workplaces and institutional frameworks. Design/methodology/approach – The paper draws on the statistical and evaluation evidence together with policy commentary and employment relations literature to provide a commentary on the changing world of employment relations. Findings – Two areas have dominated policy concerns over the period: patterns of employment disputes and the question of employment regulation. The paper argues that such a focus has stimulated some dramatic changes in the way disputes manifest in Britain, and at the same time left something of a policy vacuum in relation to the wide challenges and opportunities for improving conflict handling and the employment relationship. Through the prism of Acas’ work the paper identifies some of the enduring features that are common to improving both collective and individual relationship at work. Originality/value – The paper brings together evidence from different sources combined with the unique perspectives of Acas and its service users to draw and provide explanations for aspects of the changing face of the work.


2017 ◽  
Vol 32 (1) ◽  
pp. 30-45 ◽  
Author(s):  
Tuan Luu

Purpose The interaction between opening and closing behaviors of ambidextrous leadership produces “change” force throughout the organization in proactive response to market forces. This research aims to assess the role of ambidextrous leadership in fostering entrepreneurial orientation (EO) and market responsiveness. The research also seeks an insight into how external supply chain integration moderates the positive effect of EO on market responsiveness. Design/methodology/approach Research data were collected from 327 meso-level managers and 517 subordinates from chemical manufacturing companies in the Vietnam business context. Findings Research findings shed light on the positive effect of ambidextrous leadership on EO, which in turn contributes to market responsiveness. The moderation role that external supply chain integration plays on the EO–market responsiveness linkage was also grounded on the data set. Originality/value Through the identification of the predictive roles of ambidextrous leadership and EO for market responsiveness, the current research indicates the convergence between leadership, EO and market responsiveness research streams.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chiao-Chieh Chen ◽  
Yu-Ping Chiu

PurposeSocial media have become famous platform to search and share the COVID-19-related information. The objective of this research is to bridge the gap by proposing the effects of network cluster and transmitter activity on information sharing process.Design/methodology/approachData were collected by using Facebook application, which was available for 14 days (May 1–14) in 2020. These data were analyzed to determine the influence of the network cluster and transmitter activity.FindingsThe results showed that network cluster is positively related to transmitter activity on social media. In addition, transmitter activity partially mediated the effect of network cluster on the extent of information liked and shared. That is, transmitter activity can affect COVID-19-related information sharing on Facebook, and the activity effect is plausible and should become stronger as social network become denser.Originality/valueThis study has contributed to the knowledge of health information sharing in social media and has generated new opportunities for research into the role of network cluster. As social media is firmly entrenched in society, researches that improve the experience or quality for users is potentially impactful.


2018 ◽  
Vol 26 (4) ◽  
pp. 444-463 ◽  
Author(s):  
D.G. DeBoskey ◽  
Yan Luo ◽  
Jeff Wang

Purpose The purpose of this paper is to examine the influence of board gender diversity on the transparency of corporate political disclosure (CPD). Design/methodology/approach Two empirical proxies, CPD transparency and policy transparency, are constructed from a data set jointly produced by the Center of Political Activity and the Carol and Lawrence Zicklin Center for Business Ethics Research. The CPD transparency score measures the level of transparency in voluntary corporate disclosure of the amount of political contributions and the identity of the recipients as well as the titles and names of the executives who authorize the political spending. The policy transparency score measures the level of transparency in the voluntary disclosure of the policies governing corporate political spending. Board gender diversity is measured by the percentage of women on the board of directors. Findings Higher proportions of female directors are associated with more transparent disclosure of political contributions after controlling for a set of corporate governance and firm-level variables. Originality/value This study is the first to examine whether and how gender-diversified boards enhance the transparency of CPD. It contributes to the literature by providing evidence that gender-diversified boards enhance corporate governance.


2018 ◽  
Vol 7 (4) ◽  
pp. 357-376 ◽  
Author(s):  
Giri Aryal ◽  
John Mann ◽  
Scott Loveridge ◽  
Satish Joshi

Purpose The innovation creation literature primarily focuses on urban firms/regions or relies heavily on these data; less studied are rural firms and areas in this regard. The purpose of this paper is to employ a new firm-level data set, national in scale, and analyze characteristics that potentially influence innovation creation across rural and urban firms. Design/methodology/approach The authors use the 2014 National Survey of Business Competitiveness (NSBC) covering multiple firm-level variables related to innovation creation combined with secondary data reflecting the regional business and innovative environments where these firms operate. The number of patent applications filed by these firms measures their innovation creation, and the paper employs a negative binomial regression estimation for analysis. Findings After controlling for industry, county and state factors, rural and urban firms differ in their innovation creation characteristics and behaviors, suggesting that urban firms capitalize on their resources better than rural firms. Other major findings of the paper provide evidence that: first, for rural firms, the influence of university R&D is relevant to innovation creation, but their perception of university-provided information is not significant; and second, rural firms that are willing to try, but fail, in terms of innovation creation have a slight advantage over other rural firms less willing to take on the risk. Originality/value This paper is one of the first to analyze the 2014 NSBC, a firm-level national survey covering a wide range of innovation-related variables. The authors combine it with other regional secondary data, and use appropriate analytical modeling to provide empirical evidence of influencing factors on innovation creation across rural and urban firms.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Le Quoc Hoi ◽  
Hương Lan Trần

PurposeThis paper aims to examine the credit composition and income inequality reduction in Vietnam. In particular, the authors focus on the distinction between policy and commercial credits and investigate whether these two types of credit had adverse effects on income inequality. The authors also examine whether the impact of policy credit on income inequality is conditioned by the educational level and institutional quality.Design/methodology/approachThe authors use the primary data set, which contains a panel of 60 provinces collected from the General Statistics Office of Vietnam from 2002 to 2016. The authors employ the generalized method of moments to solve the endogenous problem.FindingsThe authors show that while commercial credit increases income inequality, policy credit contributes to reducing income inequality in Vietnam. In addition, we provide evidence that the institutional quality and educational level condition the impact of policy credit on income inequality. Based on the findings, the paper implies that it was not the size of the private credit but its composition that mattered in reducing income inequality, due to the asymmetric effects of different types of credit.Originality/valueThis is the first study that examines the links between the two components of credit and income inequality as well as constraints of the links. The authors argue that analyzing the separate effects of commercial and policy credits is more important for explaining the role of credit in income inequality than the size of total credit.


2021 ◽  
pp. 0148558X2110594
Author(s):  
Fangfang Hou ◽  
Xinpeng Xu

This study investigates whether capital account liberalization, a leading characteristic of globalization, is associated with firms’ future innovation output. Employing a novel firm-level panel data set covering 41 countries over two decades, we show that capital account liberalization is significantly associated with higher corporate patenting activities, particularly for firms from innovation-intensive industries. Further analyses show that the effect is stronger among firms from economies in a better legal environment, signifying the important role of good institutional quality in facilitating the positive impact of liberalization. The effect is also stronger among firms with higher initial productivity, consistent with the “productivity” hypothesis, according to which bigger and more productive firms generate more innovation after liberalization. Our findings are robust to the use of various measurements, subsamples, and estimation models. This study provides global firm-level evidence of the real economic impact of financial globalization.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dmytro Osiichuk ◽  
Paweł Mielcarz ◽  
Julia Kavalenka

Purpose Relying on an international panel data set, the purpose of this paper is to quantify the economic impact of labor unionization on corporate financial performance. Design/methodology/approach Static panel regression analysis is performed for a firm-level multinational data set to elucidate the postulated empirical relationships between employee unionization and corporate performance. The transmission mechanisms intermediating the studied effects are discussed and operationalized. Findings The empirical evidence demonstrates that firms with a higher level of employee unionization spend more on wages and labor-related expenses. The concomitant downside of higher resource extraction by unions is a lower rate of net employment creation and a higher possibility of redundancy layoffs. Originality/value Overall, the authors demonstrate that by creating a credible threat of employee disobedience manifested through strikes and internal wage disputes, labor unions remain an effective mechanism of increasing employees’ bargaining power. Despite the discovered weak negative associative link between the degree of unionization and corporate financial performance, the authors perceive the overall evidence to be inconclusive on this matter.


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