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ICC Advance Access originally published online on November 28, 2005
Industrial and Corporate Change 2005 14(6):993-1016; doi:10.1093/icc/dth087
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© The Author 2005. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved.

Modes of labor flexibility at firm level: Are there any implications for performance and innovation? Evidence for the Swiss economy

Spyros Arvanitis

Correspondence: Swiss Federal Institute of Technology (ETHZ), ETH Zentrum, CH-8092 Zurich, Switzerland. e-mail: arvanitis{at}kof.gess.ethz.ch.

The aim of this study is to define and measure numerical and functional labor flexibility at the firm level and investigate empirically the impact of each of these flexibility modes on performance and innovation measures as well as the interrelationship between them. Our estimation equation contains, besides the classical production factors labor and physical capital, information and communication technologies (ICT) capital, human capital, variables for flexible organizational practices as well as measures for numerical labor flexibility. The empirical investigation is based on data for about 1400 Swiss firms.


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