Institutional and Rational Determinants of Organizational Practices: Human Resource Management in European Firms

Abstract

This paper tests predictions from institutional and rational perspectives about the adoption of organizational practices through a comparative study of human resource management in firms located in six European countries. Distinguishing between calculative practices—aimed at efficient use of human resources—and collaborative practices—aimed at promoting the goals of both employees and employer—the paper predicts differences in adoption across countries. Results show that institutional determinants, as indicated by the national embeddedness of firms, have a strong effect on the application of both calculative and collaborative human resource management practices. Firm size, a rational determinant, has a considerable impact on calculative practices, whereas the effect of industrial embeddedness is quite modest for both practices.