Efficiency, productivity and employee relations in French equipment manufacturing

Chris Doucouliagos and Patrice Laroche

No 203, Cahiers du CEREFIGE from CEREFIGE (Centre Europeen de Recherche en Economie Financiere et Gestion des Entreprises), Universite de Lorraine

Abstract: The impact of employee relations on performance has received much attention. Theory predicts that employee relations will impact on efficiency as well as productivity, yet researchers usually assume a production process that is fully efficient. In this paper, the stochastic production frontier framework is used to explore simultaneously the impact of employee relations on efficiency as well as productivity, in a sample of French equipment manufacturing firms. The results show that employee relations variables are important to the performance of the French equipment manufacturing industry. Union presence tends to have a negative impact on both efficiency and productivity, but this is reversed for firms that adopt many HRM practices. The existence of multiple unions increases productivity but not efficiency, while HRM practices improve both efficiency and productivity.

Keywords: Unions; Employee relations; HRM practices; Productivity; Efficiency (search for similar items in EconPapers)
Pages: 29 pages
Date: 2002, Revised 2002
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:fie:wpaper:0203

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