Why firms adopt empowerment practices and how such practices affect firm performance? A transaction cost-exchange perspective

Yishuai Yin, Yue Wang, Ying Lu*

*Corresponding author for this work

Research output: Contribution to journalArticle

12 Citations (Scopus)

Abstract

Complementing the current management literature's focus on the value-creation side of empowerment practices, this paper offers a transaction cost-exchange perspective to explain why firms adopt empowerment practices and how such practices affect firm performance. Specifically, we theorize how performance ambiguity and human asset specificity, two major characteristics of employee-employer exchange, shape firms' decisions to adopt empowerment practices, both independently and interactively. Our model also develops a contingency perspective of how empowerment practices affect firm performance by delineating the moderating role of empowerment practices in the relationship between employee-employer exchange characteristics and firm performance.

Original languageEnglish
Pages (from-to)111-124
Number of pages14
JournalHuman Resource Management Review
Volume29
Issue number1
Early online date12 Feb 2018
DOIs
Publication statusPublished - 1 Mar 2019

Keywords

  • Employee empowerment practices
  • Human asset specificity
  • Organizational performance
  • Performance ambiguity
  • Transaction cost economics

Fingerprint Dive into the research topics of 'Why firms adopt empowerment practices and how such practices affect firm performance? A transaction cost-exchange perspective'. Together they form a unique fingerprint.

  • Cite this