Using External Work Arrangements in Core Value-creation Areas

Torstein Nesheim

European Management Journal, 2003, vol. 21, issue 4, 528-537

Abstract: According to traditional perspectives on the 'flexible firm' ([Atkinson, 1984]) as well as influential theories in the field of strategic management (TCE, RBV), non-standard work arrangements should be used in the peripheral areas of the firm's value creation processes. Based on [Matusik and Hill, 1998], we argue that firms in dynamic environments often use non-standard, external work arrangements deliberately in core value-creation areas; to access knowledge, bring in new ideas and create an innovation-stimulation competence mix with the firm's employees. In a survey of 26 Norwegian firms in computer services, this proposition receives empirical support. Further, the use of external arrangements in the core value-creation areas is positively related to innovation strategy, while there is no statistical relation with the perceived labor shortage of the competence in question. An illustrative case is also included in the paper.

Keywords: External; work; Core; value; Strategic; management; Innovation; strategy (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (5)

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