High-involvement management practices and the productivity of firms: Detecting industry heterogeneity

Laura Peutere, Antti Saloniemi, Petri Böckerman, Simo Aho, Jouko Nätti and Tapio Nummi
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Laura Peutere: Faculty of Social Sciences, Tampere University, Finland
Antti Saloniemi: Faculty of Social Sciences, Tampere University, Finland
Petri Böckerman: University of Jyväskylä, School of Business and Economics and Labour Institute for Economic Research, Finland
Simo Aho: Faculty of Social Sciences, Tampere University, Finland
Jouko Nätti: Faculty of Social Sciences, Tampere University, Finland
Tapio Nummi: Faculty of Information Technology and Communication Sciences, Tampere University, Finland
Authors registered in the RePEc Author Service: Petri Böckerman ()

Economic and Industrial Democracy, 2022, vol. 43, issue 2, 853-876

Abstract: The aim of this article is to clarify the links between high-involvement management (HIM) practices, productivity and branches of industry. The data combine a representative survey ( N = 787) of private-sector firms in Finland and register-based firm-level data on sales per employee in the year following the survey. The authors analysed the data using mixture regression and identified two clusters in the association between HIM and productivity. In one cluster, high-involvement management and productivity were positively associated, while in the other cluster, the association was negative. The association between the intensity of HIM utilisation and productivity is not always additive; the benefits of HIM were most prominent in industries where HIM was most seldom utilised. This paradox was most notable in the service sector.

Keywords: Employee participation; high-involvement management; mixture regression; performance; productivity (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ecoind:v:43:y:2022:i:2:p:853-876

DOI: 10.1177/0143831X20961155

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