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Open Access
Article
Publication date: 20 November 2019

Jan De Leede, Linda Drupsteen, Esther Schrijver, Anneke Goudswaard, Nihat Dağ, Joost Van der Weide and Sarike Verbiest

The purpose of this paper is to understand how small and medium enterprises (SMEs) cope with the need for labour flexibility. Most previous studies ignore the labour flexibility

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Abstract

Purpose

The purpose of this paper is to understand how small and medium enterprises (SMEs) cope with the need for labour flexibility. Most previous studies ignore the labour flexibility practices of SMEs, especially in times of economic growth and tight labour markets.

Design/methodology/approach

A multiple case study approach is applied, with ten Dutch SMEs located in one small province with a similar labour market. A survey was executed as an intake, followed by 48 interviews with the entrepreneurs, HR and other managers and employees, and two focus groups in each company. The findings are based on an analysis of the approved case descriptions.

Findings

SMEs, like big companies, do not rely on one flexibility practice. Volume fluctuations are countered with all flexibility strategies, the mix fluctuations and the product innovations are mostly countered with flexible functions and flexible production technology. In general, the data suggest that flexibility strategies of SMEs can be characterised as ad hoc, reactive and with a short-term orientation.

Research limitations/implications

Future research should include other sectors and regions enabling to generalise the findings. Future research should have a longitudinal design to include the pathway dependencies of flexibility practices.

Practical implications

This study identifies the need to analyse flexibility demands; reduce flexibility demands before investments in flexibility practices; create production process flexibility; invest in labour flexibility practices only after the first three steps are taken; and develop basic and more advanced levels of flexible contracts, flexible functions and flexible working times.

Originality/value

This study contributes to the authors’ knowledge on the use of labour flexibility practices in SMEs. In addition, it brings empirical data on how these labour flexibility practices relate to the needs for flexibility and how they relate to other sources of organisational flexibility, such as a flexible market approach and flexible production technologies. Dynamic capabilities should include the suggested operationalisation of the flexibility practices.

Details

Personnel Review, vol. 49 no. 3
Type: Research Article
ISSN: 0048-3486

Keywords

Open Access
Article
Publication date: 15 September 2020

Alessandro Bellocchi, Edgar Sanchez Carrera and Giuseppe Travaglini

In this paper, the authors study the long-run determinants of total factor productivity (TFP) in three major European economies over the period 1983–2017, namely Germany, France…

Abstract

Purpose

In this paper, the authors study the long-run determinants of total factor productivity (TFP) in three major European economies over the period 1983–2017, namely Germany, France and Italy.

Design/methodology/approach

The authors focus on the capital misallocation effects, scale effects and labor misallocation effects. To this end, the authors study how real interest rate shocks, real exchange rate shocks, real wage shocks and changes in labor regulation affected TFP in major European countries over the last decades. The authors employ a theoretical and an empirical model to investigate the issue. The empirical results are obtained using a VAR model for estimation.

Findings

A stripped-down model of labor market in open economy with technology progress allows to identify the relevant variables affecting TFP. On the empirical ground, the authors find a positive relationship between TFP and real interest rate in the long run. Importantly, the authors detect a positive relationship between TFP and real exchange rate. Further, the authors show that the TFP can respond positively to a stricter labor market regulation and to a higher real compensation per employee. The results provide support to the idea that TFP has a positive relation with prices in the long run, while it may be biased along the cycle because of price rigidity.

Research limitations/implications

The present model is stylized and may not capture all of the details of reality. The analysis should be extended to a larger number of countries. Technology progress could be proxied using different variables, as the R&D expenditure or the number of patents. Micro data, for specific sectors and industries, can improve the quality of the empirical investigation.

Practical implications

Mainly the authors find that TFP has a positive relationship with price changes in the long run, while it may be biased along the cycle because of price stickiness. Capital misallocation and labor misallocation can negatively affect TFP. Thus, the observed divergences in European TFP can be traced back to the misallocation effects attributable to the decrease of real interest rate and real wages, together with the raising labor flexibility. Mainly, the authors detect a positive long-run relationship between TFP and real exchange rate. This outcome strengthens the supply-side view of the relationship between productivity and real exchange rate.

Social implications

The authors believe that the present setup can be helpful to reflect critically on the nodes at the core of the productivity slowdown and asymmetries in the eurozone. The aim is to implement renewed policies in order to favor economic growth, convergence and stability in the euro area.

Originality/value

This research addresses the issue of asymmetries among European economies by focusing on the role played by real prices in the long run. Traditionally, the dynamics of TFP have been attributed only to technological components, human capital and knowledge. This work shows that the dynamics of prices such as the real interest rate, the real exchange rate and the real wage can also influence the technological process by pushing the production system toward choices that are not always optimal for economic growth. An interesting result of this research concerns the positive relationship between real exchange rates and TFP in the long term, evidence of an important supply-side effect on the technological process.

Details

Journal of Economic Studies, vol. 48 no. 5
Type: Research Article
ISSN: 0144-3585

Keywords

Open Access
Article
Publication date: 1 February 2024

Leslie Patrick Willcocks

The study aims to provide a critical review of the extent to which digital technologies are likely to replace human labour, the exponential rise in the amount of work to be done…

347

Abstract

Purpose

The study aims to provide a critical review of the extent to which digital technologies are likely to replace human labour, the exponential rise in the amount of work to be done and how far distinctively human skills are future-proofed and therefore likely to be in short supply. It reviews the evidence for a permanent switch to home and remote working enabled by emerging technologies. It assesses the business, digital and labour strategies of work organisations and the promise and challenges from a dominant trend towards a digitally enabled flexible labour model.

Design/methodology/approach

A critical review of 1020 plus case studies and the extant literature was carried out.

Findings

The relationship between emerging technologies and work is widely misunderstood, and there are major qualifiers to the idea of an overwhelming tsunami of technology drastically reducing headcounts globally. Distinctive human skills remain valuable, the amount of work to be done is increasing exponentially and automation is becoming more a coping than a labour replacement mechanism. Moves to a hybrid digitalised flexible labour model are promising but not if short-term, and if the challenges they represent are not managed well.

Research limitations/implications

The main limitation is that we are making projections into the future, though we are drawing on a lot of different sources and evidence and past data projected into the future.

Practical implications

The problem is not labour displacement but large skills shortages that will slow down the speed of technology adoption. Skills development is vital, as is the taking of long-term perspectives towards the management of hybrid, flexible working based on human-machine interactions.

Social implications

Organisations need to revitalise their training and development and labour management models. Governments and intermediary institutions need to manage transition states if the skills required to gain economic growth are to be available, and to ensure that large labour pools do not get bypassed from not having requisite skills.

Originality/value

The study offers a more subtle and complex perspective on the emerging evidence about the future of technology and work.

Details

Journal of Electronic Business & Digital Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2754-4214

Keywords

Open Access
Article
Publication date: 12 June 2023

Lin Rouvroye, Hendrik P. van Dalen, Kène Henkens and Joop J. Schippers

Flexible staffing arrangements have become a permanent feature of employment in many industrial societies. This article examines how employers perceive the consequences of using…

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Abstract

Purpose

Flexible staffing arrangements have become a permanent feature of employment in many industrial societies. This article examines how employers perceive the consequences of using flexible staffing arrangements. It presents and assesses theoretically informed hypotheses on organisational situations in which negative consequences are more likely to be perceived.

Design/methodology/approach

This study uses data (n = 761) from a bespoke employers survey, fielded in the Netherlands in 2019. Structural equation modelling (SEM) is used to measure and explain employers' perception of downsides to flexible staffing arrangements.

Findings

Employers report distinct downsides to the use of flexible staffing arrangements in terms of performance, management and employee well-being. Model estimates show that employers using flexible staffing arrangements to acquire specific expertise or to follow other organisations in their sector perceive more downsides.

Originality/value

Empirical research on employers' perception of the disadvantageous consequences of using flexible staffing arrangements is scarce. This article highlights that this practice can discourage investments in human capital and lead to a sense of insecurity among young workers. It draws attention to the relevance of distinguishing between strategic motives when trying to understand organisational behaviour regarding non-standard forms of employment.

Details

International Journal of Manpower, vol. 44 no. 9
Type: Research Article
ISSN: 0143-7720

Keywords

Content available
Article
Publication date: 1 April 1998

Adair Turner

118

Abstract

Details

European Business Review, vol. 98 no. 2
Type: Research Article
ISSN: 0955-534X

Open Access
Article
Publication date: 1 August 2019

Jianghuai Zheng and Chunmiao Shen

The purpose of this paper is to propose policy recommendations that resort to the domestic market to achieve inclusive growth from an open perspective.

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Abstract

Purpose

The purpose of this paper is to propose policy recommendations that resort to the domestic market to achieve inclusive growth from an open perspective.

Design/methodology/approach

How will economic globalization based on domestic demand affect economic growth and income distribution in an open and large country? With the aim of discussing the mechanism of the impact of expanding domestic demand on the inclusive growth from an open perspective, this paper incorporates the Global Value Chains vs National Value Chains (GVC-NVC) competition, which is triggered by foreign investments attracted by the domestic demand scale into an endogenous growth model with “Schumpeterian Innovation.”

Findings

Theoretical analysis indicates the following findings: although domestic demand-based economic globalization can promote transnational inclusive growth across countries, it is not conducive to national (domestic) inclusive growth; the impacting effect of domestic demand scale on inclusive growth across countries is subject to the moderating effect of the development maturity of the labor market; and the impacting effect of domestic demand scale on national inclusive growth is subject to the joint moderating effect of the development maturity of the labor market and labor skill structure.

Originality/value

First, this paper examines the impact of domestic demand-based economic globalization on the inclusiveness of economic growth from an open perspective, which deepens the existing theory of intra-product specialization and inclusive growth. Second, the paper puts the sequential production process into Schumpeterian growth model and reveals the mechanism that domestic demand affects inclusive growth. Third, the study finds that the enhancement of labor market efficiency, transfer payments to low-skilled labor and the creation of a fair competitive market environment will contribute to the globalization of a domestic demand-oriented economy, which provides a policy-making basis for government sectors.

Details

China Political Economy, vol. 2 no. 1
Type: Research Article
ISSN: 2516-1652

Keywords

Open Access
Article
Publication date: 19 November 2019

Shen-cheng Wang, Kin-sun Chan and Ke-qing Han

Aiding employment is an important poverty reduction strategy in many countries’ social welfare systems, as this strategy can help empower the recipients with a better living…

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Abstract

Purpose

Aiding employment is an important poverty reduction strategy in many countries’ social welfare systems, as this strategy can help empower the recipients with a better living standard, development and social inclusion. The purpose of this paper is to identify the most significant individual and systematic variables for the employment status of low-income groups in urban China.

Design/methodology/approach

The data of this study are drawn from “Social Policy Support System for Poverty-stricken Families in Urban and Rural China 2015” report. The Ministry of Civil Affairs of the People’s Republic of China appointed and funded the Institute of Social Science Survey (ISSS) at Peking University to deliver the related project and organize a research team to write the report. Multiple binary logistic regression analysis is adopted to identify both individual and systematic factors that affect the employment status among low-income groups in urban China.

Findings

According to the results of the binary logistic regression model, individual factors, including: gender; householder status; education; and self-rated health status, play a significant role in determining the employment status of low-income groups in urban China. Clearly, the impacts of individual factors are more influential to marginal families than to families entitled to receive Basic Living Allowance. In contrast, compared with marginal families, systematic factors are more influential to families entitled to receive Basic Living Allowance.

Originality/value

This study highlights the importance of precise poverty reduction strategy and the issue of “welfare dependence” among low-income groups in urban China. Policy recommendations derived from the findings are hence given, including: the promotion of family-friendly policies; the introduction of a smart healthcare system; the establishment of a Basic Living Allowance adjustment mechanism; and the provision of related social services.

Details

Public Administration and Policy, vol. 22 no. 2
Type: Research Article
ISSN: 1727-2645

Keywords

Abstract

Details

International Journal of Sociology and Social Policy, vol. 43 no. 3/4
Type: Research Article
ISSN: 0144-333X

Open Access
Article
Publication date: 7 January 2021

Ekpenyong Ekpenyong Udofia, Bimbo Onaolapo Adejare, Gbemi Oladipo Olaore and Etete Ekpenyong Udofia

This study aims to test the impact of the coronavirus (Covid-19) pandemic on large firms, with regard to a supply disruption, productivity, customer satisfaction and firm…

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Abstract

Purpose

This study aims to test the impact of the coronavirus (Covid-19) pandemic on large firms, with regard to a supply disruption, productivity, customer satisfaction and firm performance.

Design/methodology/approach

A cross-sectional survey design and stratified sampling technique were implemented for employee selection and data gathering. Confirmatory factor analysis (CFA) was used to examine the data and model fitness, while the structural equation model was used for hypotheses testing.

Findings

The pandemic triggered supply disruptions, but did not significantly impact the productivity of manufacturing firms directly. However, supply disruption positively and significantly impacted productivity. Organisational productivity had no significant impact on customer satisfaction, however, when mediating the relationship between Covid-19 and customer satisfaction, it produces a positive indirect effect. Finally, Covid-19 and supply disruption when mediated by organisational productivity both had negative significant relationships on performance.

Research limitations/implications

Having a unique model, it creates a trail for future researchers to explore further. Though customer satisfaction was expected to be affected by the pandemic, it is interesting to find out that customer satisfaction when mediated by organisational productivity was positively influenced.

Practical implications

Disruptions are inevitable, managers must balance the pursuit of customer satisfaction and productivity so that one does not erode the other. Emphasis must be channelled towards managing the productivity of the firm to maintain customer satisfaction during these uncertain times. Deliberate steps like manufacturing flexibility investments should be initiated.

Originality/value

The first study to examine Covid-19, supply disruption, customer satisfaction, organisational productivity and performance in the Nigerian manufacturing sector.

Details

Journal of Humanities and Applied Social Sciences, vol. 3 no. 5
Type: Research Article
ISSN:

Keywords

Content available
Article
Publication date: 16 May 2019

Francesco Pastore and Klaus F. Zimmermann

1981

Abstract

Details

International Journal of Manpower, vol. 40 no. 3
Type: Research Article
ISSN: 0143-7720

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