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The Effects of Institutional and Organizational Characteristics on Work Force Flexibility: Evidence from Call Centers in Three Liberal Market Economies

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  • Danielle D. Van Jaarsveld
  • Hyunji Kwon
  • Ann C. Frost

Abstract

This comparative study examines survey data from 464 call centers in the United States, 167 in the United Kingdom, and 387 in Canada to explore two questions: whether institutional differences shape employers' choices of ways to improve work force flexibility, both numerical and functional; and whether strategies for numerical flexibility and functional flexibility are related. The results suggest that institutional differences across these liberal market economies—specifically, in dismissal regulations and union strength—did affect how employers chose to achieve work force flexibility. For example, the use of part-time workers was more common in countries with more stringent rules regulating dismissals. Organizational characteristics also mattered, with outsourced firms being more likely than in-house firms to use part-time workers. Evidence also suggests that managers used numerical flexibility and functional flexibility strategies as substitutes: higher employee job discretion was associated with both lower dismissal rates and a lower likelihood of temporary use.

Suggested Citation

  • Danielle D. Van Jaarsveld & Hyunji Kwon & Ann C. Frost, 2009. "The Effects of Institutional and Organizational Characteristics on Work Force Flexibility: Evidence from Call Centers in Three Liberal Market Economies," ILR Review, Cornell University, ILR School, vol. 62(4), pages 573-601, July.
    • Handle: RePEc:sae:ilrrev:v:62:y:2009:i:4:p:573-601
    DOI: 10.1177/001979390906200406
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    References listed on IDEAS

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    1. Smirnykh, Larisa & Wörgötter, Andreas, 2019. "The importance of institutional and organizational characteristics for the use of fixed-term contracts in Russia," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 24(1), pages 89-121.
    2. Mike Zhang & Timothy Bartram & Nicola McNeil & Peter Dowling, 2015. "Towards a Research Agenda on the Sustainable and Socially Responsible Management of Agency Workers Through a Flexicurity Model of HRM," Journal of Business Ethics, Springer, vol. 127(3), pages 513-523, March.
    3. Huo, Baofeng & Ye, Yuxiao & Zhao, Xiande & Shou, Yongyi, 2016. "The impact of human capital on supply chain integration and competitive performance," International Journal of Production Economics, Elsevier, vol. 178(C), pages 132-143.
    4. Smirnych, L. I. & Wörgötter, Andreas, 2016. "The importance of institutional and organizational characteristics for the use of fixed-term and agency work contracts in Russia," ECON WPS - Working Papers in Economic Theory and Policy 09/2016, TU Wien, Institute of Statistics and Mathematical Methods in Economics, Economics Research Unit.

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