The effects of innovative work practices on firm and worker outcomes: Evidence from Lithuania

Derek C. Jones*, Modestas Gelbuda, Kimberly Walker

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingChapterScientificpeer-review

Abstract

While innovative work practices (IWPs), such as self-directed teams and performance related pay, have become commonplace in firms around the world, little is known about their nature and effects in emerging market countries. This study uses new data collected from face-to-face interviews with large samples of workers from two manufacturing firms in Lithuania in 2005 mainly to investigate hypotheses concerning the effects of IWPs on firm and worker outcomes. In these cases we find: (i) the range of IWPs is limited though particular IWPs, notably self-directed teams, are strongly evident; (ii) in view of the historical legacy, the incidence of some outcomes, notably monitoring, was surprisingly high; (iii) typically self-directed teams positively impact worker outcomes, notably job satisfaction and employee involvement, though effects on monitoring and effort are less frequent; (iv) typically equity ownership and bonuses do not affect worker outcomes, though positive impacts on effort and peer monitoring sometimes are found; (v) the evidence for complementary effects of teams and performance pay or financial participation is very weak. In the main, these findings do not support the mutual gains theory that IWPs positively impact both firm and worker outcomes.

Original languageEnglish
Title of host publicationInternational perspectives on participation
EditorsJaime Ortega
Pages121-150
Number of pages30
Volume15
ISBN (Electronic) 978-1-78441-293-7
DOIs
Publication statusPublished - 2014
MoE publication typeA3 Part of a book or another research book

Publication series

NameAdvances in the economic analysis of participatory and labor-managed firms
ISSN (Print)0885-3339

Keywords

  • Financial participation
  • Lithuania
  • Mutual gains
  • Performance related pay
  • Teams

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