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High-involvement management practices and the productivity of firms: Detecting industry heterogeneity

Author

Listed:
  • Laura Peutere

    (Faculty of Social Sciences, Tampere University, Finland)

  • Antti Saloniemi

    (Faculty of Social Sciences, Tampere University, Finland)

  • Petri Böckerman

    (University of Jyväskylä, School of Business and Economics and Labour Institute for Economic Research, Finland)

  • Simo Aho

    (Faculty of Social Sciences, Tampere University, Finland)

  • Jouko Nätti

    (Faculty of Social Sciences, Tampere University, Finland)

  • Tapio Nummi

    (Faculty of Information Technology and Communication Sciences, Tampere University, Finland)

Abstract

The aim of this article is to clarify the links between high-involvement management (HIM) practices, productivity and branches of industry. The data combine a representative survey ( N = 787) of private-sector firms in Finland and register-based firm-level data on sales per employee in the year following the survey. The authors analysed the data using mixture regression and identified two clusters in the association between HIM and productivity. In one cluster, high-involvement management and productivity were positively associated, while in the other cluster, the association was negative. The association between the intensity of HIM utilisation and productivity is not always additive; the benefits of HIM were most prominent in industries where HIM was most seldom utilised. This paradox was most notable in the service sector.

Suggested Citation

  • Laura Peutere & Antti Saloniemi & Petri Böckerman & Simo Aho & Jouko Nätti & Tapio Nummi, 2022. "High-involvement management practices and the productivity of firms: Detecting industry heterogeneity," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 43(2), pages 853-876, May.
    • Handle: RePEc:sae:ecoind:v:43:y:2022:i:2:p:853-876
    DOI: 10.1177/0143831X20961155
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    References listed on IDEAS

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