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Managerial perceptions of works councils’ effectiveness in the Netherlands

Author

Listed:
  • A. van den Berg
  • Y.K. Grift
  • A. van Witteloostuijn

Abstract

Although works councils have, by and large, equally extensive legal rights in Germany and the Netherlands, this is the first econometric analysis that investigates the influence of works councils on firm performance for the Netherlands. We use a nation-wide Dutch dataset with information on management’s perceptions of the works council’s impact on their firms’ efficiency and innovation. Following Jirjahn and Smith (2006), we find that managerial perceptions crucially depend on the firm’s human resource management policies and market strategies. Additionally, we argue that managerial perceptions are related to the works council’s role attitude and management’s leadership style. For this argument, we find support, too.

Suggested Citation

  • A. van den Berg & Y.K. Grift & A. van Witteloostuijn, 2008. "Managerial perceptions of works councils’ effectiveness in the Netherlands," Working Papers 08-05, Utrecht School of Economics.
    • Handle: RePEc:use:tkiwps:0805
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    References listed on IDEAS

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    1. John T. Addison & Claus Schnabel & Joachim Wagner, 2004. "The Course of Research into the Economic Consequences of German Works Councils," British Journal of Industrial Relations, London School of Economics, vol. 42(2), pages 255-281, June.
    2. Annette van den Berg, 2004. "The Contribution of Work Representation to Solving the Governance Structure Problem," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 8(2), pages 129-148.
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    Keywords

    works councils; managerial response; effectiveness; efficiency; innovation;
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