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Adoption and Termination of Employee Involvement Programs

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  • Wei Chi
  • Richard B. Freeman
  • Morris M. Kleiner

Abstract

This study uses a 10-year longitudinal database on U.S. manufacturing establishments to analyze the dynamics of the adoption and termination of employee involvement programs (EI). We show that firms' use of EI has not grown continuously, but rather introduce and terminate EI policies in ways that imply that the policies are complementary with each other and with other advanced human resource practices, seemingly moving toward an equilibrium distribution of EI policies. Using a Markov model, we estimate the long-run distribution of the number of EI programs in firms and find that adjustment to the steady-state distribution takes about 20 years.

Suggested Citation

  • Wei Chi & Richard B. Freeman & Morris M. Kleiner, 2007. "Adoption and Termination of Employee Involvement Programs," NBER Working Papers 12878, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:12878
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    References listed on IDEAS

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    Cited by:

    1. Susan Helper & Morris M. Kleiner, 2009. "International Differences in Lean Production, Productivity, and Employee Attitudes," NBER Chapters, in: International Differences in the Business Practices and Productivity of Firms, pages 231-261, National Bureau of Economic Research, Inc.
    2. Jirjahn, Uwe & Mohrenweiser, Jens, 2013. "Active owners and the failure of newly adopted works councils," ZEW Discussion Papers 13-080, ZEW - Leibniz Centre for European Economic Research.
    3. Lynch, Lisa M., 2007. "The Adoption and Diffusion of Organizational Innovation: Evidence for the U.S. Economy," IZA Discussion Papers 2819, Institute of Labor Economics (IZA).
    4. Daniel Herbold & Heiner Schumacher, 2020. "Relational retention," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(4), pages 490-502, June.
    5. Uwe Jirjahn & Jens Mohrenweiser, 2016. "Owner-Managers and the Failure of Newly Adopted Works Councils," British Journal of Industrial Relations, London School of Economics, vol. 54(4), pages 815-845, December.
    6. Avner Ben-Ner & Stephanie Lluis, 2011. "Learning: What and How? An Empirical Study of Adjustments in Workplace Organization Structure," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 50(1), pages 76-108, January.
    7. Jenna E. Myers, 2024. "Triadic Technology Configuration: A Relational Perspective on Technologists’ Role in Shaping Cloud-Based Technologies," ILR Review, Cornell University, ILR School, vol. 77(3), pages 307-335, May.
    8. Lin, Hai-Fen & Su, Jing-Qin & Higgins, Angela, 2016. "How dynamic capabilities affect adoption of management innovations," Journal of Business Research, Elsevier, vol. 69(2), pages 862-876.
    9. Ollo-López, Andrea & Bayo-Moriones, Alberto & Larraza-Kintana, Martín, 2011. "The impact of country-level factors on the use of new work practices," Journal of World Business, Elsevier, vol. 46(3), pages 394-403, July.
    10. Rand H. Al-Dmour & Steve Love, 2015. "Determinants of the implementation of HRIS applications in business organisations in Jordan," International Journal of Human Resources Development and Management, Inderscience Enterprises Ltd, vol. 15(1), pages 69-96.
    11. Kato, Takao & Owan, Hideo, 2011. "Market characteristics, intra-firm coordination, and the choice of human resource management systems: Theory and evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 80(3), pages 375-396.
    12. Dorgyles C.M. Kouakou, 2022. "Determinants of employees' participation in decision‐making in developing countries: Does a firm's formal versus informal status matter?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(5), pages 1501-1514, July.
    13. Bruce Kaufman, 2014. "Explaining Breadth and Depth of Employee Voice across Firms: A Voice Factor Demand Model," Journal of Labor Research, Springer, vol. 35(3), pages 296-319, September.
    14. Mohrenweiser, Jens, 2022. "Works Councils," GLO Discussion Paper Series 1103, Global Labor Organization (GLO).

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    More about this item

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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