Employee Participation and Equal Opportunities Practices: Productivity Effect and Potential Complementarities

The relationships between employee participation, equal opportunities practices and productivity are explored. Data from the British Workplace Employee Relations Survey of 1998 provide strong evidence that equal opportunities practices improve productivity overall, and increasingly so as the share of female and ethnic minority employees increases. However, short‐term effects may be negative in segregated workplaces. Non‐financial participation schemes are negatively associated with productivity, but in most cases the joint presence of these participatory schemes and equal opportunities practices significantly increases productivity. Interactions between participatory and equal opportunities schemes are also affected by work‐force composition and by the level of equal opportunities policies implemented.     

From Internal to Network Labor Markets? Insights on New Promotion Processes from the Call Center Industry

Research on network forms of organization suggests that “business units” may be a more useful analytical unit than “firms” in understanding restructuring of internal labor markets. We find evidence for this proposition by analyzing promotion opportunities in 1760 call centers in sixteen countries. We find substantial differences in promotion opportunities internal to the unit versus elsewhere, related to the use of explicit versus tacit knowledge in performance evaluation, distinctions between unit‐specific and general‐firm knowledge, and network‐bridging organizational characteristics.     

Strategic promotion tournaments and worker performance

In this analysis I study promotion schemes as human resource management strategies by which the firm can realize strategic goals by motivating workers to higher levels of effort and performance. Using information on promotions, wages, and performance for professional workers in a cross‐section of establishments in four metropolitan areas of the United States, I investigate empirically the proposition that firms strategically organize promotion tournaments to motivate workers to higher levels of performance. I present evidence suggesting that relative performance of workers determines promotions, supporting the notion of internal promotion competitions in which internal hiring policies and fixed job slots combine to create competitions among workers of a given rank in a firm. I then estimate a structural model of promotion tournaments that simultaneously accounts for worker and firm behavior and how the interaction of these behaviors gives rise to promotions. The results are consistent with the prediction of tournament theory that workers are motivated by larger spreads. Copyright © 2006 John Wiley & Sons, Ltd.     

Pay Secrecy and the Gender Wage Gap in the United States

Legislators and advocates claim that pay secrecy perpetuates the gender wage gap and that the Fair Labor Standards Act (FLSA) should be amended to outlaw these practices. Using a difference‐in‐differences fixed‐effects human‐capital wage regression, I find that women with higher education levels who live in states that have outlawed pay secrecy have higher earnings, and that the wage gap is consequently reduced. State bans on pay secrecy and federal legislation to amend the FLSA to allow workers to share information about their wages may improve the gender wage gap, especially among women with college or graduate degrees.     

Blocked But Not Tackled: Who Founds New Firms When Rivals Dissolve?

Research summary: This article examines the role of competitive shocks in creating opportunities for new firm foundings. I argue that the sudden dissolution of rival firms may release resources that create opportunities for firm formation, particularly among employees facing impediments to capturing value in their current organizations. Analyzing microdata from the legal services industry, I use unexpected deaths of solo‐practicing attorneys as quasi‐exogenous sources of rival dissolution. Results indicate that these shocks increase the odds of founding by about 30%, with stronger effects among attorneys with weaker social connections or higher competition for promotion. The article thus highlights the role that founders play in reallocating dissolved rivals' resources while demonstrating that founding may be an important outlet for “blocked” employees to capture value from opportunities. Managerial summary: This article finds that the shutdown and dissolution of a rival organization may spur employees to found new firms. As a consequence, managers may find it valuable to pay attention to employees' turnover intentions following the dissolution of a rival. Findings suggest that employees who are having trouble advancing in the firm may be the most likely to found a new organization when a rival dissolves, so managers may want to focus retention efforts on these individuals. To the extent that managers wish to capture customers, employees, and other resources that were formerly attached to a dissolved rival, managers may wish to be aware that they could be in competition with their own employees for these resources and opportunities. Copyright © 2017 John Wiley & Sons, Ltd.     

Do Innovative Work Practices and Use of Information and Communication Technologies Motivate Employees?

I investigate the impact of innovative work practices and information and communication technologies (ICT) use on employees’ motivations. The paper provides new and interesting results on how firms can build a motivational environment. Within an original instrumenting framework, I modify what previous analyses reveal about quality circle and training participation. The results confirm the positive role of work practices such as teamwork, quality norms, formal appraisals, management recognition, and family‐friendly policies. The ICT that most contributed to the development of a motivational environment are those that facilitate access to information and knowledge such as workflow, Internet, and e‐mail.     

The Bases of Compromise in the Workplace: A Theoretical Framework

Schemes for workplace participation have long been promoted and vilified. Such conflicting views have been brought into sharp focus by the highly variable results of such practices as teamwork. Yet a theoretical framework to grasp workplace co‐operation is lacking. This paper develops a framework on the basis of theory and a review of a wide range of empirical studies. Capital and labour each have two sets of ‘concerns’: over ‘control’ of the workplace and the longer term ‘development’ of the productive forces. Cross‐classifying these concerns produces a matrix of patterns of workplace relations. Each cell of the matrix represents a different combination of the interests of capital and labour. The matrix can be used to map participation schemes so as to capture their varying features. The next task, pursued elsewhere, is to identify the conditions leading to locations in different cells of the matrix.     

Does a cassava research-for-development program have impact at the farm level? Evidence from the Democratic Republic of Congo

This paper evaluates the impact of a cassava research-for-development program on farm level outcomes. The program was implemented in the Democratic Republic of Congo from 2001 to 2009. We apply propensity score matching, Rosenbaum bounds on treatment effects, Altonji et al. method of selection on observables and unobservables and endogenous switching regression to farm survey data collected during the 2009 cropping season. We use these methods to test whether the R4D program has a statistically significant effect on outcomes of interest and if these are not driven by selection on unobservables. Using propensity score matching, we find statistically significant positive effects on household participation in cassava markets, adoption of improved varieties and crop management practices and household food adequacy; and no statistically significant effects on yields and profits. The results show that bias due to selection on unobservables is not severe enough to invalidate the impact estimates. Bias may still be a problem that is present in the analysis. But there is evidence that it is not substantial. Although the program does not have a statistically significant positive effect on yields and profits, the significant program effects on market participation, variety adoption, and food adequacy merit further promotion of the program since these positive outcomes tend to be pre-conditions for realizing long-term yield and profit benefits.     

Prospects for integrated soil fertility management using organic and inorganic inputs: evidence from smallholder African agricultural systems

This paper reviews current organic nutrient management practices and their integration with mineral fertilizers in Sub-Saharan Africa with a view to understanding the potential impacts on a range of input markets. A number of different organic nutrient management practices have been found to be technically and financially beneficial, but they differ considerably as to their effectiveness and resource requirements. A review of African smallholder experiences with integrated soil fertility management practices finds growing use, both indigenously and through participation in agricultural projects. Patterns of use vary considerably across heterogeneous agroecological conditions, communities and households, but are stimulated by profitable commercially oriented agricultural opportunities. The potential for integrated soil fertility management to expand markets for organic inputs, labor, credit, and fertilizer is explored. We found that there are few direct analyses of these links and indirect evidence at this point in time is inconclusive.     

Global Labour‐Standards Advocacy by European Civil Society Organizations: Trends and Developments

In recent years, developments in intergovernmental organizations and transnational private governance organizations have created new opportunities and constraints for the promotion of global labour‐standards governance by civil society organizations (CSOs). This article describes how European CSOs (including trade union organizations and non‐governmental organizations (NGOs)) respond to these developments. It argues that European civil society is witnessing a threefold shift in priorities of labour‐standards advocacy: from pushing regulatory approaches to organizational capacity building; from corporate responsibility strategies focused on compliance to strategies focused on transparency; and from fair labour standards within the sustainable development agenda to a host of other issues. The overall result is that labour‐standards advocacy in general and private labour governance in particular are receiving less attention from European CSOs.     

Heterogeneous incentives for innovation adoption: The price effect on segmented markets

It is now commonly accepted that poverty alleviation and the development of agricultural value chains in low income countries require farmers to innovate. However numerous constraints to innovation adoption have been identified. In the literature, the market structures on which producers sell their output have received remarkably little attention. In this article, I argue that these can impact a producer’s choices with respect to the level of effort invested in changing agricultural practices. More specifically, due to transaction costs, contract farming and other market imperfections, output prices and production levels in rural areas are often jointly determined, leading to market segmentation. I develop a simple model to discuss how market segmentation induces non-trivial effects on incentives to innovate. Next, I rely on farm-level panel data from an extension project in the Peruvian highlands to test the empirical implications of the model. Producers that were not included in the formal market but close to it, performed better in improving agricultural practices. The indirect consequence of this investment is a higher price increase than the rest of the population, creating heterogeneous impacts of the programme, opportunities for economic mobility and a reduction in inequality. The evidence indicates how considering the effects of market structures leads to a more nuanced understanding of the process of agricultural innovation adoption in low and middle income countries.     

They Would If They Could: Assessing the Bindingness of the Property Holding Constraints for REITs

This study examines the bindingness of the property holding constraints which Real Estate Investment Trusts (REITs) face on their portfolios (the dealer rule), and illustrates how these constraints hinder REITs from exploiting opportunities to time the property market. I first simulate a set of filter‐based market timing strategies, which outperform a buy‐and‐hold strategy out of sample, and show that imposing a four‐year (or even the newer two‐year) holding constraint significantly reduces the excess returns the strategies generate. I then analyze actual holding periods of properties in REIT portfolios and find that there seems to exist a large degree of demand for short property holding periods and that the trades generated by the filter strategy generally resemble actual REIT trading activity, validating the relevance of the simulation results. A direct test for the constraint reveals that REITs' propensity to hold a property beyond the minimum period increases, the higher the profit from the transaction, consistent with the asymmetric nature in which the rule is enforced. By contrast, this effect is insignificant for Umbrella‐Partnership REITs (UPREITs), which are not as affected by the constraint. I further show that UPREITs overall achieve significantly better ex‐post market timing performance than non‐UPREITs. I thus find that overall REITs are limited by the dealer rule.     

Catching Fire: Institutional Interdependencies in Union‐Facilitated Knowledge Diffusion

I find that school union representatives’ ‘boundary spanning’ communications throughout the school district predict the diffusion of knowledge between schools. Hence, my data reveal school union representatives as critical conduits for improvement‐related knowledge transfer and innovation. Yet, I also find that these external networks interact strongly with the level of workforce participation characterizing each school: The effects of external networks on internal knowledge diffusion are considerably stronger in more participative schools compared to less participative schools. This research contributes to industrial relations scholarship by demonstrating how union‐related institutions can foster unique social structures that directly strengthen innovation‐related capabilities, as well as how the efficacy of these networks depends on managerial norms at different areas of the organization. This study is also of timely practical relevance at a time when labour unions are increasingly painted as obstacles to, rather than potential facilitators of, improvement and innovation.     

The Relationships of Informal High Performance Work Practices to Job Satisfaction and Workplace Profitability

Recent empirical evidence reveals considerable divergence between management reports and employee reports regarding organizational high performance work practices (HPWPs). This divergence implies that employees may not participate in some HPWPs that are formally present in their organizations, but also, that employees may participate in HPWPs that are not formally present in their organizations. In this study, we examine the implication of the latter case (i.e., employee participation in “informal” HPWPs) for employee‐level and organization‐level outcomes. Our analyses, using data from the Statistics Canada Workplace and Employee Survey, suggest that employee participation in informal HPWPs is associated with enhanced job satisfaction and workplace profitability in a similar way as employee participation in formal HPWPs is associated with these outcomes.     

Facilitating open innovation processes through network orchestration mechanisms

Participation in open innovation networks presents challenges, as firms must recognize value before being willing to openly collaborate, yet opportunities typically cannot be realized without active engagement. Innovation intermediaries can address these tensions through orchestration mechanisms which create value at different levels of innovation networks. This paper addresses an important research gap by identifying the role of intermediaries in delivering open innovation activities across different levels and describing how these activities form interrelated orchestration mechanisms. A longitudinal case study follows the development of an open innovation network from inception, based on interviews and observations with participants including start-ups and large firms. Findings highlight how intermediary activities and practices align with orchestration mechanisms used simultaneously at different levels and create value for members. A multi-level analysis contributes to the open innovation literature by describing the interdependent nature of value creation within the innovation intermediary model.     

The many shades of ‘openness’: an application of item response theory to open innovation research

This study addresses one of the most basic research questions investigated in the Open Innovation (OI) literature: how open are firms? This question has remained partially unanswered given the challenges encountered by empirical research in assessing the relevance of specific OI practices within the OI model, as well as the types of activities perceived by managers as OI benefits or concerns. To provide an answer to this question, we suggest a framework using Item Response Theory to improve over current measures of firms' openness and test it on a sample of 383 technology‐based SMEs. Our theoretical model conceives openness as an instance of how firms make decisions regarding the adoption of different OI practices based on their evaluation of OI benefits and concerns. Focusing on the relationship between firm‐level differences in terms of openness and the types of OI practices adopted by these firms, we show that significantly different levels of ‘OI maturity’ are required to broaden the scope of external partnerships and to shift from non‐pecuniary OI modes (relation‐based approaches) toward pecuniary (transaction‐based) practices. Our results have relevant implications for the OI literature and provide new managerial insight into OI adoption.     

Leveraging ideas from user innovation communities: using text‐mining and case‐based reasoning

User innovation communities, where end users voluntarily share their ideas about new products or services, have become an important source of innovation. While efforts have been made to extract and develop ideas from these sources, existing studies have largely focused on company‐led efforts to facilitate user participation, rather than on voluntary user discussions within communities themselves. As a remedy, this research proposes to directly target those voluntary ideas from user innovation communities for product/service innovation. Because quantities of textual information within these communities are rather massive, we propose a modified and integrated approach of text‐mining (TM) and case‐based reasoning (CBR). Specifically, by constructing two casebases on ideas and existing products using TM and checking for overlap between the two using CBR, the approach enables the identification of opportunities for innovation and reference products for adaptation. We demonstrate the approach through a case of mobile apps in Apple App Store, and our findings suggest that the approach can help firms and users/developers broaden the source of ideas and leverage them into new product concepts.     

Buying into Capitalism? Employee Ownership in a Disconnected Era

This article considers whether employee ownership mitigates the negative workplace outcomes identified by the Disconnected Capitalism Thesis (DCT). Drawing on a programme of in‐depth interviews with workers and managers in employee‐owned businesses (EOBs), the article reveals how they are partially insulated from the vicissitudes endemic within contemporary capitalism. In contrast to the workplace outcomes envisaged within the DCT, these firms are characterized by strong workforce participation, high levels of employment security, active employee engagement and strong levels of employee creativity. Not only are these features beneficial for productivity and firm performance, they generate a form of ‘connected’ capitalism, partially offsetting wider negative systemic forces at play in the economy.     

The impact of technical consultants on the quality of their clients' products: Evidence from the Bordeaux wine industry

Research summary : Recent research rooted in the resource‐based view of the firm suggests that resources are more likely to create value if they are effectively managed. An underlying assumption of the literature is that firms manage their resources on their own. However, many firms hire consultants to help them do so. In this study, I develop and test hypotheses regarding the impact of technical consultants on the quality of their clients' products. Using data from the Bordeaux wine industry, I find evidence that the use of technical consultants has a positive impact on relative product quality and a negative impact on the extremeness of relative product quality. Moreover, the positive impact of technical consultants on relative product quality is stronger at lower levels of relative resource quality. Managerial summary : Findings from a study in the Bordeaux wine industry indicate that the decision to hire consultants should depend on a firm's strategy. If a firm wants to improve its performance, it should hire consultants. Indeed, the “best practices” of technical consultants are generally more valuable than internally generated knowledge. If a firm wants to achieve outstanding performance, hiring consultants may not be the right decision. Because the “best practices” of technical consultants have more certain performance implications than internally generated knowledge, they decrease the likelihood of extremely low performance. However, their lack of uniqueness also decreases the likelihood of extremely high performance. Finally, the decision to hire consultants should depend on the quality of a firm's resources. Firms with low‐quality resources tend to benefit more from the “best practices” of technical consultants. Copyright © 2016 John Wiley & Sons, Ltd.