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Worker Commitment and Establishment Performance in Europe

Addison, John T.; Teixeira, Paulino

Authors

Paulino Teixeira



Abstract

Using a cross section of matched data from the employee and management questionnaires of the European Company Survey for 28 nations, this paper investigates the determinants of worker commitment and the potential contribution of commitment to establishment performance. An index of worker commitment is constructed from employer perceptions of the motivation of workers and their retention and absenteeism propensities, while the determinants of commitment are fashioned from observations taken from the worker representation side, ordered along dimensions such as perceived organizational trust and involvement. The commitment index is then linked to establishment performance outcomes. Key findings from the commitment equation are the positive role of trust in management, the quality of information exchanged, and the degree of worker representation influence in respect of major decisions taken by management. In turn, commitment emerges as a key correlate of establishment financial performance and labor productivity growth. Our supplemental sensitivity analysis is supportive of the interpretation of commitment as a driver of performance.

Journal Article Type Article
Acceptance Date Jul 12, 2023
Online Publication Date Jul 28, 2023
Publication Date 2023
Deposit Date Aug 16, 2023
Publicly Available Date Jul 29, 2025
Journal The Manchester School
Print ISSN 1463-6786
Electronic ISSN 1467-9957
Publisher University of Manchester
Peer Reviewed Peer Reviewed
DOI https://doi.org/10.1111/manc.12455
Public URL https://durham-repository.worktribe.com/output/1719220