Does the Technological Transformation of Firms Go Along with More Employee Control over Working Time? Empirical Findings from an EU-wide Combined Dataset

We investigate the links between the technological transformation of firms and employee control over working time. We conduct EU-wide analysis at the meso-level by relating information from the 2019 European Company Survey (Eurofound) with the 2019 Labour Force Survey ad hoc module (Eurostat). This dataset allows analysing the technological transformation of firms as a relationship between three types of investments (in R&D, digital technologies and learning capacity of the organisation) that spur innovation outputs. We then study the consequences of the technological transformation on the spread of unfavourable working time arrangements, distinguishing between individual and organisation-oriented arrangements. Our model considers the direct effects of investments in digital technologies adoption and use and learning capacity of the organisation and the mediating role of firms' innovation strategies. Results indicate that the Learning capacity of the organisation is directly associated with more individual-oriented working time flexibility, but entails higher organisation-oriented working time flexibility. The effect of Digital technologies adoption and use depends instead on firms' innovation strategy: product innovation leads to more employee control over working time, while marketing innovation has the opposite outcome. Process and organisational innovations yield mixed consequences buffering employees from organisation-oriented working time flexibility in more time-constrained work environments.