Relational Skills and Corporate Productivity in a Comparative Size Class Perspective

Abstract

AbstractDrawing on insights from various fields within game theory literature, such as strategic interactions, social dilemmas, gift exchange, and procedural utility, we argue that corporate social responsibility (CSR) and relational skills—whether between firms, employers and workers, among workers themselves, or with stakeholders—are associated with positive effects on productivity. We test this hypothesis using a comparative approach across small, medium, and large Italian firms, leveraging data from the 2019 CSR survey conducted by the Italian Statistical Institute (ISTAT). Our analysis reveals that firm size plays a crucial role in the impact of relational skills on added value per worker, even after controlling for relevant factors. Key components of relational skills identified in our study include corporate policies focusing on workers' well-being, prioritizing teamwork attitudes in recruitment, supporting initiatives within the local productive network, and involving stakeholders in CSR initiatives. Our findings indicate that stakeholder engagement positively impacts all firm sizes, while worker well-being is particularly significant for small and medium firms, local network initiatives for medium and large firms, and teamwork for medium-sized firms. Instrumental variable estimates find evidence of a causal link beyond these correlations. We conclude that firm size exhibits an inverse U-shaped effect on the impact of teamwork skills, reduces the influence of gift exchange mechanisms, and strengthens the effects of investments in the local productive environment on added value per worker.