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Trust and the Flexible Firm: International Comparisons
Authors:EDWARD H LORENZ
Abstract:Japanese and German manufacturers are more successful than their counterparts in Britain and France in achieving organizational flexibility, which depends on labor-management trust and cooperation. This trust developed in Germany and Japan over the post-World War II decades through the institutionalization of a system of labor-management consultation. This paper examines the role of power and social norms to explain why trust-building systems of joint consultation take hold in one place and not in another.
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