SHIFTING BOUNDARIES IN ECONOMICS: THE INSTITUTIONAL COGNITIVE STRAND AND THE FUTURE OF INSTITUTIONAL ECONOMICS

This paper aims at contributing to the debate on the future of institutional economics and of the field as a whole by starting from the literature that discusses the relationship between Old‐Original Institutional Economics and New Institutional Economics. It suggests that the process of reunifying OIE and NIE (and evolutionary economics) prompted by part of the literature could be improved by the contribution of the Cognitive Institutional Economics. The paper follows a two‐stage pathway: first, it frames the debate on the relationships between NIE and the OIE and it concentrates on a subset of the literature that shows that NIE's recent developments complicate the distinction between NIE and OIE, and it explores the possibility that NIE and OIE may merge so that an amalgam of NIE, OIE and Evolutionary Economics becomes the next economic paradigm. Secondly, the paper argues that a step forward in the direction outlined by the literature has been made by CIE, which is a research stream that developed from cross‐fertilization among NIE, OIE and the Hayekian contributions to the analysis of institutions. In the concluding remarks, the possible emergence of a single institutional paradigm is discussed in the light of the literature about change in economics.     

Theorising determinants of employee voice: an integrative model across disciplines and levels of analysis

This article critiques organisational behaviour (OB) research on employee voice and presents a broader‐based conceptual model that integrates ideas and concepts across employment relationship disciplines and levels of analysis. OB studies err by taking an overly individualistic, psychological, managerialist and de‐institutionalised perspective on employee voice. This criticism is documented and illustrated with numerous examples from the OB literature. To provide a constructive step forward, the article presents an enlarged model of employee voice that not only includes OB but also brings in important contributions from the HRM, industrial relations, labour economics and labour process fields. The model provides an integrative framework for theoretical and empirical studies of voice and yields a number of research and practice implications.     

Global problems,local solutions: unfree labour relations and seafarer employment with crewing agencies in China

This article documents and discusses a local labour control regime employed by Chinese crewing agencies to restrict the mobility of newly graduated officer seafarers. The shipping industry relies on a stable and skilled seafarer workforce on flexible employment, assembled globally with the help of local crewing agencies. A stable workforce and flexible employment do not seem easily compatible. This article examines how Chinese crewing agencies help manage this tension in China through analysing the experience of seafarers. It argues that to cater for the demand of international shipping companies, Chinese crewing agencies adopt a particular local labour control regime that re/produces unfree labour relations. The local control regime is built on existing institutional practices in China, structural weaknesses of seafarers and the disjunctions between the local institutional set‐ups and the global chains of labour supply.     

More voice after more exit? Unstable industrial relations in Central Eastern Europe

The article examines the industrial relations developments in the post‐communist countries that entered the EU in 2004. Rather than introducing the ‘European Social Model’, EU accession has led to some social tensions, in spite of relatively strong economic growth, because of deregulation, European Monetary Union conditions and the enduring need to compete for foreign investment. EU institutional promotion of social dialogue through the Directive on Information and Consultation of Workers, sector social dialogue committees and the European Employment Strategy has only had limited effects in increasing the ‘voice’ of employees in employment relations. National‐level social dialogue has produced poor results and has even been weakened in Slovenia (where it was originally strong) and, initially, in Slovakia. The lack of ‘voice’ for employees has led to increased ‘exit’ through political populism/abstention and migration. A double paradox emerges. Pro‐labour policies are being developed not by the EU, but rather by its opposite, Euro‐sceptical governments (in Poland and Slovakia), while in the workplaces, employers are forced to concessions not by their employees, but by those who leave and cause labour shortages. However, there is also some evidence of a resurgent ‘voice’ from below, through strikes, organising campaigns, informal collective protests and collective bargaining innovations. Drawing on both theory and history of industrial relations, it is concluded that some preconditions for more stable social compromises including more ‘voice’ are emerging.     

The development of the Indonesian labour movement

The paper examines the development of the labour movement in Indonesia in the context of trade unionism elsewhere in the area of the Asia-Pacific region. The Indonesian labour movement is shown to exhibit a dual nature; consisting of an official sponsored and legal form of unionism, and an independent, quasi-illegal form of unionism. The two have a conflicting yet symbiotic relationship, where the state plays a very significant role in determining the parameters for behaviour in industrial relations. Although the form of state intervention in Indonesia may be different from state intervention in other comparable countries, its aims are broadly similar. In this context the Indonesian independent labour movement is shown to have had some measure of success in resisting the restrictions placed upon it in its attempt to advance its members' terms and conditions of employment.     

THE NEW INSTITUTIONAL ECONOMICS – A DIFFERENT APPROACH TO ECONOMIC ANALYSIS

The initial objective of the paper is to describe the way in which the term ‘New Institutional Economics’ (NIE) emerged in the literature and became the designation for a new field concerned with the study of various analytical techniques designed for the exploration of institutional phenomena. It is then shown how some of the more important of these techniques, transaction‐cost economics, property‐rights analysis and contract theory, have been applied in two central lines of neoinstitutional thought – the Williamsonian and the Northian. Criticisms of these two disparate theoretical positions on the NIE are considered and assessed. Next, a brief review of some of the empirical literature is undertaken so that the explanatory powers of NIE themes can be gauged. Finally, the paper offers a few general remarks on the present state of the NIE and its possible influence on the further development of economics.     

INDUSTRIAL RELATIONS AND THE BRITISH ECONOMY IN THE 1990s: MRS THATCHER'S LEGACY

The authors challenge the view that the UK Conservative governments during the 1980s achieved important advances in industrial performance through the abandonment of corporatist policies that allowed management to regain the initiative and push through changes in work organization. The article takes issue with the idea that collective labour institutions necessarily impair economic efficiency, and it points up important connections between Thatcher's offensive against organized labour and the enduring weaknesses in human capital and technology. The article has three sections: the first examines labour markets and industrial relations; the second analyses government regulation; and the third assesses trends and prospects for the future, with emphasis on employment flexibility and labour productivity. The authors conclude with some comments on future prospects in the context of Britain's fuller integration in Europe.     

Labour productivity and employment in Australian manufacturing SMEs

This paper examines the relationship between labour productivity and employment in Australian manufacturing small and medium enterprises (SMEs). The results indicate that labour productivity of SMEs varies substantially between industries within the manufacturing sector, but on average labour productivity for manufacturing SMEs increased at a faster rate than that of large manufacturing enterprises across all industries. All manufacturing industries except one recorded employment growth during the period under study. However like labour productivity growth, employment growth also varies across industries within the manufacturing sector. Yet the study could not establish any definite relationship between labour productivity growth and employment. This finding is consistent with some previous studies.     

Do European trade unions foster social solidarity? Evidence from multilevel data in 18 countries

Trade unions have been analysed quantitatively primarily in their role as vested interest organisations, attempting to quantify the excludable benefits they provide to members rather than examine their wider impact in an institutional context. Power resource theory acknowledges unions as social agents but assumes the willingness to oppose neoliberalism is constant, limited only by scarce power resources. Whilst true in general terms, this fails to explain trends of increasing labour market dualism in resource‐rich industrial relations regimes. This article examines social solidarity as a union power resource, measuring the impact of trade union membership on social attitudes of solidarity. Data were collected from the 2016 European Social Survey for 18 countries, grouped into five distinct industrial relations regimes. The findings suggest that, at European level, union membership still has a significant effect on all dimensions of social solidarity, but these relationships vary significantly across industrial relations regimes.     

The Americanisation of the European business system?

This article examines the impact of contemporary business practices within the American business system on established patterns of industrial relations (IR) management in European subsidiaries of US multinationals, specifically how established firm‐level settlements for the management of IR may or may not combine with host‐country effects to constrain such innovations. The empirical material leads us to evaluate subsidiaries of US multinationals as a contingent factor indicating that institutional effects at the level of the national business system are likely to be more embedded than the effects of ownership on employment and IR at firm level.     

The transformation of industrial authority and paternalistic capitalism in the global economy: case studies of Taiwan's textiles industries

Abstract This paper is an attempt to theorize changing employment relations in capitalist development, drawing upon Taiwan's experience of industrialization within the context of global economic competition and undertaking case studies in the textiles industries. It aims to investigate changes in the nature of employment relations, with special reference to authority relations, by examining how they have been shaped by changes in Taiwan's textiles industries. It argues that a transformation of paternalistic capitalism is under way in Taiwan. The study also examines how changes in economic activities have profoundly affected people's lives and experiences. It is suggested that the underpinnings of traditional authority are being shaken. Loosened personal ties and claims for statutory working rights have led to the emergence of different sources of industrial authority. Here is a crucial 'ideological break' in terms of workers' consciousness. Moreover, the 'communal paternalism' or 'enterprise paternalism' of labour regimes in Taiwan propounded by Deyo (1989, 1998) is now called into question.     

The impact of corporate governance on employment relations in South Korea: the shareholder versus stakeholder perspectives

This study empirically examined the impact of corporate governance on employment relations outcomes utilizing a comprehensive data set drawn from 214 Korean firms. The study contrasted the stakeholder and shareholder perspectives of corporate governance in investigating the impact of corporate governance on employment relations outcomes. The results showed that the stakeholder corporate governance orientation (as compared to the shareholder orientation) had positive relationships with education/training expense, average employee tenure and industrial relations (IR) climate, as well as a negative association with number of strikes. Overall, the results implied that the stakeholder orientation of firms led to more beneficial effects for employees and more consensual relations with labour unions than the shareholder orientation did.     

The impact of equity markets and corporate governance on labour market flexibility

Drawing from various literatures, this article explores links between equity markets and labour market flexibility. Various data sources are used to test relationships for a set of OECD countries, controlling for other likely influences on flexibility such as government and industrial relations institutions. The results are generally supportive as regards employment flexibility: equity market trading activity is associated with shorter job tenure, higher activity rates, and greater employment change over the cycle. However, the relationship between equity markets and pay flexibility is less statistically robust to the addition of controls.     

The local in the global: regions,employment systems and multinationals

This article examines how the international competition to attract and retain foreign direct investment shapes the governance of business and employment systems. Through an examination of global production networks and the changing role of the state in economic governance, it highlights the sub‐national regional space as an important level of institutional adaptation. Specifically, it explores how regions organise themselves to compete for inward investment, and the potential role of industrial relations actors within this. It argues that both research into multinational companies, and of the governance of employment systems more generally, need to incorporate an analysis of regional competition for productive investment more fully into their analysis.     

The impact of EU accession on Turkish industrial relations and social dialogue

This article examines whether the European Union membership process is transforming the ‘deep structure’ of Turkish industrial relations. We make an attempt to illustrate this through the prism of Turkish experience in social dialogue regarded as an indispensable tool of the European social model. Turkish industrial relations is characterised by restrictive labour laws, employer hostility to unionisation, a large informal economy and labour market, and strong state intervention, which have historically constituted the main elements of ‘the deep structure’ of Turkish industrial relations. In procedural terms, the institutions for social dialogue have been established but the influence of the social partners is limited because of the dominance of the state and the weakness of labour. The existing attempts at developing social dialogue rest on shaky foundations emanating mostly from the state's and employers' disrespect of basic labour rights.     

The prospect of decent work,decent industrial relations and decent social relations in China: towards a multi-level and multi-disciplinary approach

Abstract

Decent Work is a key initiative launched by the International Labour Organization in 1999. The initiative is to promote decent and productive employment with decent conditions of freedom, equality, security and human dignity. In reviewing academic literature on decent work, existing studies have been conducted primarily from a legal and political economic perspective. It is also largely situated outside any national industrial relations framework, both theoretically and practically. Decent work is an advocacy initiative of ILO, but the promotion of universal values embodied in the notion (e.g. equality, fairness, justice and dignity) needs to be tailored to specific societal contexts. Drawing on existing academic literature, this review article examines ideological, institutional and cultural distances between decent work and the reality of employment in China. It argues that achieving decent work requires an ideological transition of ‘traditional’ Chinese work ethics and a cultural transition from collectivism and altruism towards individualism and an emphasis on individual rights. This study also examines and highlights regulatory enforcement deficits and the inadequate role of the trade union in facilitating the advancement of decent work at various levels. Finally, the article argues that the study of decent work should be mainstreamed as an integral part of decent industrial relations and ultimately, decent social relations. It calls for a multi-level and multi-disciplinary approach to examining the historical, political, economic, ideological and cultural context of specific countries in fulfilling the ‘Decent Work’ agenda.     

Catholic Social Thought and New Institutional Economics: An Assessment of Their Affinities and Areas of Potential Convergence

The potential link between Catholic social teaching (CST) and the theoretical developments associated with new institutional economics (NIE) are explored. The emphasis is on the contributions of two Nobel Prize winners in economics—Douglass C. North and Elinor Ostrom—and on the work of political scientist Vincent Ostrom. By adjusting the neoclassical presumptions dominating modern economic theory to include culture, ideas, and religious beliefs in the analysis of economic behavior, the economic and social theorizing developed by these scholars advances a framework that has significant affinities with CST’s foundational critique of economic concepts and theories and with its normative position regarding the nature and functioning of social and economic systems.     

Labour intelligence and industrial relations policy 1886–1914*

This article examines the contribution of labour intelligence to the policy-making process during a formative period of modern British industrial relations. It concludes that the experience of 1886–1914 has important lessons for current policy-makers in the use of labour intelligence.     

Flexibility and labour management: Chinese manufacturing enterprises in the 1990s

The rapid economic growth and structural reform that have taken place in China over the past two decades have had a substantial impact on the system of labour management in Chinese manufacturing enterprises. The purpose of this article is to document and analyse the nature of these changes in state-owned enterprises and joint venture companies. The effect of these changes on work relations, employment relations and industrial relations will form the basis of the analysis. The emphasis in the analysis will be on how work, employment and industrial relations have accommodated the demand for greater flexibility. Labour management in six manufacturing firms in the Shanghai region will be examined. This research is a pilot project for a larger-scale research in 1999. While no attempt is made to generalize the research findings, the research clarifies the extent and limits of flexibility in the current Chinese economy.     

IR and HR perspectives on workplace conflict: What can each learn from the other?

This paper presents an analysis of industrial relations (IR) and human resource (HR) perspectives on conflict in the employment relationship. While both perspectives recognize the existence of employment relationship conflict, IR's premises about such conflict are that it stems from an employer–employee power imbalance, is enduring, often requires institutional interventions in the forms of unionism and legislation to correct the power imbalance, and can be constructive even when the conflict is dealt with in adversarial, nonproblem-solving fashion. HR's premises about employment relationship conflict, by contrast, are that such conflict stems from poor management, can be partially reduced by organizational and workplace innovations that build an employer–employee unity of interests, can be still further reduced through cooperative, mutual gains-oriented problem-solving techniques, and, as a consequence of improved management, will fade from the employment scene. These premises are then examined in relation to case and empirical evidence on grievance procedures, employment discrimination, and employee involvement/participation programs. The analysis finds some support for, but also important limitations on, each of these key perspectives. Recommendations are offered to enable members of the IR and HR communities to incorporate into their respective domains key lessons from each other's dominant perspective on employment relationship conflict.