Year: 2010
Type: report
Abstract: We study how HRM practices such as employee involvement (EI) in firm decision making and financial participation (FP) are associated with firm performance.Our novel HRM survey data set has advantages over most data sets typically used in related studies since it is a panel, includes a broad variety of practices and is a representative random sample.Also we take into account other important drivers of firm performance, notably computer use, product market competition, and family and foreign majority ownership.The sensitivity of findings to different empirical approaches is investigated and our preferred approach is novel and uses robust regression methods.While results are sensitive to different specifications we find that performance-based pay and indices of FP are positively related to firm performance.Contrary to many previous findings we do not find a significant positive association between indices of EI and firm performance, though in some case we find that individual EI practices do enhance business performance.
Source: Aaltodoc (Aalto University)
Language: English
Domain: Social Sciences
Open Access status: green
Funder: Työsuojelurahasto
Award: G6019464659
OpenAlex ID: W2809328533