English
 
User Manual Privacy Policy Disclaimer Contact us
  Advanced SearchBrowse

Item

ITEM ACTIONSEXPORT

Released

Journal Article

Rethinking the Link between Labour Market Flexibility and Corporate Competitiveness: A Critique of the Institutionalist Literature

MPS-Authors
/persons/resource/persons41201

Herrmann,  Andrea M.
Projekte von Gastwissenschaftlern und Postdoc-Stipendiaten, MPI for the Study of Societies, Max Planck Society;
Utrecht University, The Netherlands;

Locator
Fulltext (public)

SER_6_2008_Herrmann.pdf
(Any fulltext), 348KB

Supplementary Material (public)
There is no public supplementary material available
Citation

Herrmann, A. M. (2008). Rethinking the Link between Labour Market Flexibility and Corporate Competitiveness: A Critique of the Institutionalist Literature. Socio-Economic Review, 6(4), 637-669. doi:10.1093/ser/mwn013.


Cite as: http://hdl.handle.net/11858/00-001M-0000-0012-478D-E
Abstract
Firms in the same political economy specialize in the pursuit of the same competitive strategy—so the argument of the competitiveness literature. The reason is that national institutions provide specific input factors which, in turn, are required for that strategy. To test this chain of reasoning, I identify the strategy of pharmaceutical firms in Germany, Italy, and the UK. Contrary to the expectations of the literature, I find that the firms in each economy pursue the same strategy variety. Seeking to understand how deviant firms can compete despite comparative institutional disadvantages, I analyse the importance of diverse labour-market institutions for the provision of particular skill types which, in turn, are needed for these strategies. These analyses show that firms succeed in circumventing institutional constraints at the national level by relying on two functionally equivalent institutions: open international labour markets and atypical contracts.