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“High performance” work practices, decentralization, and profitability: evidence from panel data -super-†

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  • Massimo G. Colombo
  • Marco Delmastro
  • Larissa Rabbiosi

Abstract

The aim of this article is to test the effects on firm profitability of the adoption of both “high performance” work practices (HPWPs) and changes in organizational design relating to the depth of the corporate hierarchy and the allocation of decision authority. For this purpose, we resort to panel estimates based on a longitudinal data set that includes information relating to 109 Italian manufacturing single-plant firms observed in the 1990s during 7 years. The econometric results show that the adoption of HPWPs leads to better performances, especially when it is associated with the delegation of decision authority downward the corporate hierarchy. Copyright 2007 , Oxford University Press.

Suggested Citation

  • Massimo G. Colombo & Marco Delmastro & Larissa Rabbiosi, 2007. "“High performance” work practices, decentralization, and profitability: evidence from panel data -super-†," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(6), pages 1037-1067, December.
    • Handle: RePEc:oup:indcch:v:16:y:2007:i:6:p:1037-1067
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    File URL: http://hdl.handle.net/10.1093/icc/dtm031
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    Citations

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    Cited by:

    1. Nicolas A. Zacharias & Ruth Maria Stock & Subin Im, 2017. "Strategic Givens In New Product Development: Understanding Curvilinear Effects On New Product Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(01), pages 1-31, January.
    2. Burdin, Gabriel & Kato, Takao, 2021. "Complementarity in Employee Participation Systems: International Evidence," IZA Discussion Papers 14694, Institute of Labor Economics (IZA).
    3. Lehmann, Johannes, 2024. "HR analytics: A centralizing or decentralizing force?," Working papers 2024/13, Faculty of Business and Economics - University of Basel.
    4. Johann Piet Hausberg & Peter S. H. Leeflang, 2019. "Absorbing Integration: Empirical Evidence On The Mediating Role Of Absorptive Capacity Between Functional-/Cross-Functional Integration And Innovation Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(06), pages 1-37, August.
    5. Nadeem, Sadia & Raza, Mishal & Kayani, Neelab & Aziz, Amna & Nayab, Dure, 2018. "Examining cross-cultural compatibility of high performance work practices," International Business Review, Elsevier, vol. 27(3), pages 563-583.
    6. Riccardo Leoni, 2012. "Workplace Design, Complementarities among Work Practices, and the Formation of Key Competencies: Evidence from Italian Employees," ILR Review, Cornell University, ILR School, vol. 65(2), pages 316-349, April.
    7. Yasuhiro Arai & Noriaki Matsushima, 2023. "The impacts of suppliers and mutual outsourcing on organizational forms," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(1), pages 114-132, February.
    8. Annalisa Cristini & Dario Pozzoli, 2010. "Workplace practices and firm performance in manufacturing," International Journal of Manpower, Emerald Group Publishing Limited, vol. 31(7), pages 818-842, October.
    9. Arnaldo Camuffo & Fabrizio Gerli, 2012. "What do lean managers do? Modeling management behaviors in lean production environments," Working Papers 13, Venice School of Management - Department of Management, Università Ca' Foscari Venezia.

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