Abstract
Although works councils have, by and large, equally extensive legal rights in
Germany and the Netherlands, this is the first econometric analysis that
investigates the influence of works councils on firm performance for the
Netherlands. We use a nation-wide Dutch dataset with information on
management’s perceptions of the works council’s impact on their firms’ efficiency
and innovation. Following Jirjahn and Smith (2006), we find that managerial
perceptions crucially depend on the firm’s human resource management policies
and market strategies. Additionally, we argue that managerial perceptions are
related to the works council’s role attitude and management’s leadership style. For
this argument, we find support, too.
Germany and the Netherlands, this is the first econometric analysis that
investigates the influence of works councils on firm performance for the
Netherlands. We use a nation-wide Dutch dataset with information on
management’s perceptions of the works council’s impact on their firms’ efficiency
and innovation. Following Jirjahn and Smith (2006), we find that managerial
perceptions crucially depend on the firm’s human resource management policies
and market strategies. Additionally, we argue that managerial perceptions are
related to the works council’s role attitude and management’s leadership style. For
this argument, we find support, too.
| Original language | English |
|---|---|
| Place of Publication | Utrecht |
| Publisher | UU USE Tjalling C. Koopmans Research Institute |
| Number of pages | 23 |
| Publication status | Published - 2008 |
Publication series
| Name | Discussion Paper Series Tjalling C. Koopmans Research Institute |
|---|---|
| Publisher | UU USE Tjalling C. Koopmans Institute |
| No. | 05 |
| Volume | 08 |
| ISSN (Electronic) | 2666-8238 |
Keywords
- works councils
- managerial response
- effectiveness
- efficiency
- innovation