Do National Values of Culture and Sustainability Influence Direct Employee PDM Levels and Scope? The Search for a European Answer

Abstract

The dynamic development of the global economy has led to the creation of agile and innovative organizations that need to adapt rapidly to new challenges. For that reason, organizations need to make decisions that help them face uncertain situations and be successful. Research has demonstrated that employee participative decision making (PDM) promotes more innovative, flexible, and sustainable organizations. The present paper examines organizational, cultural, and sustainable factors to discover how these variables affect PDM in the European context. For this purpose, this study focuses on two main objectives: (1) analyzing the impact of a country’s cultural and institutional values (macro level), beyond individual and organizational characteristics (micro and meso levels), on the adoption of PDM in the European context and (2) differentiating among the types of decisions for which employee participation is considered (operational or organizational). To attain these goals, three hierarchical fitted regression models were fitted using data based on the Sixth European Working Conditions Survey (EWCS) and complemented with information from Hofstede’s dimensions, whose scores are obtained from 2010 Hofstede database, and institutional values from the 2015 World Competitive Yearbook (WCY). Results demonstrate that some cultural values are significant for PDM and that sustainability is related to employee participation at the general and operational levels. This allows the conclusion that organizations located in countries with greater sustainability awareness are also those that promote employee participation the most.