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The impact of employee involvement on small firms' financial performance

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  • Alex Bryson

Abstract

The author examines the relationship between employee involvement (EI) and small firms' financial performance using statistical analyses of establishment-level data from the 1990 Workplace Industrial Relations Survey. The author finds EI practices and EI combinations which 'work' for small-firm establishments are very different from those that work for large-firm establishments. The least bureaucratic and least costly EI methods have the potential to benefit small firms most. Whether they actually do so depends on the array of other EI and non-EI practices in operation: an inappropriate configuration can have a negative effect on performance. The findings take account of factors associated with being an 'EI firm'.

Suggested Citation

  • Alex Bryson, 1999. "The impact of employee involvement on small firms' financial performance," National Institute Economic Review, National Institute of Economic and Social Research, vol. 169(1), pages 78-95, July.
    • Handle: RePEc:sae:niesru:v:169:y:1999:i:1:p:78-95
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    Cited by:

    1. David Blanchflower & Alex Bryson, 2008. "Union Decline in Britain," CEP Discussion Papers dp0864, Centre for Economic Performance, LSE.
    2. Artz, Georgeanne M. & Kim, Younjun, 2011. "Business ownership by workers: are worker cooperatives a viable option?," ISU General Staff Papers 201111090800001098, Iowa State University, Department of Economics.
    3. Alex Bryson & Michael White, 2016. "When does HRM 'Work' in Small British Enterprises?," DoQSS Working Papers 16-01, Quantitative Social Science - UCL Social Research Institute, University College London.
    4. Alex Bryson & John Forth, 2016. "What Role Did Management Practices Play in SME Growth Post-recession?," DoQSS Working Papers 16-11, Quantitative Social Science - UCL Social Research Institute, University College London.
    5. Amal LAALOU & Lamia EL GUERMAI, 2016. "The Correlation Between The Human Resources Management Practices And The Company’S Performance: Case Ofthe « Source Marrakech » Company," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(1), pages 126-144, May.
    6. Paulo Aguiar do Monte, 2019. "Effort Level by Firm Size in a Developing Country," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(1), pages 73-87, March.

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