Post by Sapphire Capital on Aug 7, 2008 1:19:14 GMT 4
The Organizational Governance of Work Relationships between Employment and Self-Employment
Ulrike Muehlberger
Vienna University of Economics and Business Administration; International Centre for Economic Research (ICER)
Sonia Bertolini
Socio-Economic Review, Vol. 6, Issue 3, pp. 449-472, 2008
Abstract:
This paper analyses work relationships on the border between employment and self-employment and the consequences of making use of these new forms of work, especially on the side of firms. We study the complexity and variety of dependent forms of outsourcing by comparing the firm-internal solutions adopted to solve the arising control-flexibility dilemma in two industries (insurance, business services) embedded in two different institutional contexts (Italy, Austria). This paper shows that employers have established informal relational contracts that, in combination with formal contracts, reduce the threat of opportunism while simultaneously allowing a certain amount of control over the worker. We highlight the fact that a hierarchal structure returns to the relationship between worker and employer through the mechanisms of control and dependency. Finally, we stress that social relationships complement the market mechanism through the creation of assurance and trust as well as the development of specific configurations of social networks (i.e. network and temporal embeddedness).
papers.ssrn.com/sol3/papers.cfm?abstract_id=1157724
Ulrike Muehlberger
Vienna University of Economics and Business Administration; International Centre for Economic Research (ICER)
Sonia Bertolini
Socio-Economic Review, Vol. 6, Issue 3, pp. 449-472, 2008
Abstract:
This paper analyses work relationships on the border between employment and self-employment and the consequences of making use of these new forms of work, especially on the side of firms. We study the complexity and variety of dependent forms of outsourcing by comparing the firm-internal solutions adopted to solve the arising control-flexibility dilemma in two industries (insurance, business services) embedded in two different institutional contexts (Italy, Austria). This paper shows that employers have established informal relational contracts that, in combination with formal contracts, reduce the threat of opportunism while simultaneously allowing a certain amount of control over the worker. We highlight the fact that a hierarchal structure returns to the relationship between worker and employer through the mechanisms of control and dependency. Finally, we stress that social relationships complement the market mechanism through the creation of assurance and trust as well as the development of specific configurations of social networks (i.e. network and temporal embeddedness).
papers.ssrn.com/sol3/papers.cfm?abstract_id=1157724