The firm. Techno-organizational changes, industrial relations and performances. An enquiry on Reggio Emilia local industrial system

It is not unknown that the evolution of firm theories has been developed along a path paved by an increasing awareness of the organizational structure importance. From the early “neoclassical” conceptualizations that intended the firm as a rational actor whose aim is to produce that amount of output, given the inputs at its disposal and in accordance to technological or environmental constraints, which maximizes the revenue (see Boulding, 1942 for a past mid century state of the art discussion) to the knowledge based theory of the firm (Nonaka & Takeuchi, 1995; Nonaka & Toyama, 2005), which recognizes in the firm a knnowledge creating entity, with specific organizational capabilities (Teece, 1996; Teece & Pisano, 1998) that allow to sustaine competitive advantages. Tracing back a map of the theory of the firm evolution, taking into account the several perspectives adopted in the history of thought, would take the length of many books. Because of that a more fruitful strategy is circumscribing the focus of the description of the literature evolution to one flow connected to a crucial question about the nature of firm’s behaviour and about the determinants of competitive advantages. In so doing I adopt a perspective that allows me to consider the organizational structure of the firm as an element according to which the different theories can be discriminated. The approach adopted starts by considering the drawbacks of the standard neoclassical theory of the firm. Discussing the most influential theoretical approaches I end up with a close examination of the knowledge based perspective of the firm. Within this perspective the firm is considered as a knowledge creating entity that produce and mange knowledge (Nonaka, Toyama, & Nagata, 2000; Nonaka & Toyama, 2005). In a knowledge intensive organization, knowledge is clearly embedded for the most part in the human capital of the individuals that compose such an organization. In a knowledge based organization, the management, in order to cope with knowledge intensive productions, ought to develop and accumulate capabilities that shape the organizational forms in a way that relies on “cross-functional processes, extensive delayering and empowerment” (Foss 2005, p.12). This mechanism contributes to determine the absorptive capacity of the firm towards specific technologies and, in so doing, it also shape the technological trajectories along which the firm moves. After having recognized the growing importance of the firm’s organizational structure in the theoretical literature concerning the firm theory, the subsequent point of the analysis is that of providing an overview of the changes that have been occurred at micro level to the firm’s organization of production. The economic actors have to deal with challenges posed by processes of internationalisation and globalization, increased and increasing competitive pressure of less developed countries on low value added production activities, changes in technologies and increased environmental turbulence and volatility. As a consequence, it has been widely recognized that the main organizational models of production that fitted well in the 20th century are now partially inadequate and processes aiming to reorganize production activities have been widespread across several economies in recent years. Recently, the emergence of a “new” form of production organization has been proposed both by scholars, practitioners and institutions: the most prominent characteristic of such a model is its recognition of the importance of employees commitment and involvement. As a consequence it is characterized by a strong accent on the human resource management and on those practices that aim to widen the autonomy and responsibility of the workers as well as increasing their commitment to the organization (Osterman, 1994; 2000; Lynch, 2007). This “model” of production organization is by many defined as High Performance Work System (HPWS). Despite the increasing diffusion of workplace practices that may be inscribed within the concept of HPWS in western countries’ companies, it is an hazard, to some extent, to speak about the emergence of a “new organizational paradigm”. The discussion about organizational changes and the diffusion of HPWP the focus cannot abstract from a discussion about the industrial relations systems, with a particular accent on the employment relationships, because of their relevance, in the same way as production organization, in determining two major outcomes of the firm: innovation and economic performances. The argument is treated starting from the issue of the Social Dialogue at macro level, both in an European perspective and Italian perspective. The model of interaction between the social parties has repercussions, at micro level, on the employment relationships, that is to say on the relations between union delegates and management or workers and management. Finding economic and social policies capable of sustaining growth and employment within a knowledge based scenario is likely to constitute the major challenge for the next generation of social pacts, which are the main social dialogue outcomes. As Acocella and Leoni (2007) put forward the social pacts may constitute an instrument to trade wage moderation for high intensity in ICT, organizational and human capital investments. Empirical evidence, especially focused on the micro level, about the positive relation between economic growth and new organizational designs coupled with ICT adoption and non adversarial industrial relations is growing. Partnership among social parties may become an instrument to enhance firm competitiveness. The outcome of the discussion is the integration of organizational changes and industrial relations elements within a unified framework: the HPWS. Such a choice may help in disentangling the potential existence of complementarities between these two aspects of the firm internal structure on economic and innovative performance. With the third chapter starts the more original part of the thesis. The data utilized in order to disentangle the relations between HPWS practices, innovation and economic performance refer to the manufacturing firms of the Reggio Emilia province with more than 50 employees. The data have been collected through face to face interviews both to management (199 respondents) and to union representatives (181 respondents). Coupled with the cross section datasets a further data source is constituted by longitudinal balance sheets (1994-2004). Collecting reliable data that in turn provide reliable results needs always a great effort to which are connected uncertain results. Data at micro level are often subjected to a trade off: the wider is the geographical context to which the population surveyed belong the lesser is the amount of information usually collected (low level of resolution); the narrower is the focus on specific geographical context, the higher is the amount of information usually collected (high level of resolution). For the Italian case the evidence about the diffusion of HPWP and their effects on firm performances is still scanty and usually limited to local level studies (Cristini, et al., 2003). The thesis is also devoted to the deepening of an argument of particular interest: the existence of complementarities between the HPWS practices. It has been widely shown by empirical evidence that when HPWP are adopted in bundles they are more likely to impact on firm’s performances than when adopted in isolation (Ichniowski, Prennushi, Shaw, 1997). Is it true also for the local production system of Reggio Emilia? The empirical analysis has the precise aim of providing evidence on the relations between the HPWS dimensions and the innovative and economic performances of the firm. As far as the first line of analysis is concerned it must to be stressed the fundamental role that innovation plays in the economy (Geroski & Machin, 1993; Stoneman & Kwoon 1994, 1996; OECD, 2005; EC, 2002). On this point the evidence goes from the traditional innovations, usually approximated by R&D investment expenditure or number of patents, to the introduction and adoption of ICT, in the recent years (Brynjolfsson & Hitt, 2000). If innovation is important then it is critical to analyse its determinants. In this work it is hypothesised that organizational changes and firm level industrial relations/employment relations aspects that can be put under the heading of HPWS, influence the propensity to innovate in product, process and quality of the firm. The general argument may goes as follow: changes in production management and work organization reconfigure the absorptive capacity of the firm towards specific technologies and, in so doing, they shape the technological trajectories along which the firm moves; cooperative industrial relations may lead to smother adoption of innovations, because not contrasted by unions. From the first empirical chapter emerges that the different types of innovations seem to respond in different ways to the HPWS variables. The underlying processes of product, process and quality innovations are likely to answer to different firm’s strategies and needs. Nevertheless, it is possible to extract some general results in terms of the most influencing HPWS factors on innovative performance. The main three aspects are training coverage, employees involvement and the diffusion of bonuses. These variables show persistent and significant relations with all the three innovation types. The same do the components having such variables at their inside. In sum the aspects of the HPWS influence the propensity to innovate of the firm. At the same time, emerges a quite neat (although not always strong) evidence of complementarities presence between HPWS practices. In terns of the complementarity issue it can be said that some specific complementarities exist. Training activities, when adopted and managed in bundles, are related to the propensity to innovate. Having a sound skill base may be an element that enhances the firm’s capacity to innovate. It may enhance both the capacity to absorbe exogenous innovation and the capacity to endogenously develop innovations. The presence and diffusion of bonuses and the employees involvement also spur innovative propensity. The former because of their incentive nature and the latter because direct workers participation may increase workers commitment to the organizationa and thus their willingness to support and suggest inovations. The other line of analysis provides results on the relation between HPWS and economic performances of the firm. There have been a bulk of international empirical studies on the relation between organizational changes and economic performance (Black & Lynch 2001; Zwick 2004; Janod & Saint-Martin 2004; Huselid 1995; Huselid & Becker 1996; Cappelli & Neumark 2001), while the works aiming to capture the relations between economic performance and unions or industrial relations aspects are quite scant (Addison & Belfield, 2001; Pencavel, 2003; Machin & Stewart, 1990; Addison, 2005). In the empirical analysis the integration of the two main areas of the HPWS represent a scarcely exploited approach in the panorama of both national and international empirical studies. As remarked by Addison “although most analysis of workers representation and employee involvement/high performance work practices have been conducted in isolation – while sometimes including the other as controls – research is beginning to consider their interactions” (Addison, 2005, p.407). The analysis conducted exploiting temporal lags between dependent and covariates, possibility given by the merger of cross section and panel data, provides evidence in favour of the existence of HPWS practices impact on firm’s economic performance, differently measured. Although it does not seem to emerge robust evidence on the existence of complementarities among HPWS aspects on performances there is evidence of a general positive influence of the single practices. The results are quite sensible to the time lags, inducing to hypothesize that time varying heterogeneity is an important factor in determining the impact of organizational changes on economic performance. The implications of the analysis can be of help both to management and local level policy makers. Although the results are not simply extendible to other local production systems it may be argued that for contexts similar to the Reggio Emilia province, characterized by the presence of small and medium enterprises organized in districts and by a deep rooted unionism, with strong supporting institutions, the results and the implications here obtained can also fit well. However, a hope for future researches on the subject treated in the present work is that of collecting good quality information over wider geographical areas, possibly at national level, and repeated in time. Only in this way it is possible to solve the Gordian knot about the linkages between innovation, performance, high performance work practices and industrial relations.

Self-Organizing Mechanisms for Task Allocation in a Knowledge-Based Economy

A prevalent claim is that we are in knowledge economy. When we talk about knowledge economy, we generally mean the concept of “Knowledge-based economy” indicating the use of knowledge and technologies to produce economic benefits. Hence knowledge is both tool and raw material (people’s skill) for producing some kind of product or service. In this kind of environment economic organization is undergoing several changes. For example authority relations are less important, legal and ownership-based definitions of the boundaries of the firm are becoming irrelevant and there are only few constraints on the set of coordination mechanisms. Hence what characterises a knowledge economy is the growing importance of human capital in productive processes (Foss, 2005) and the increasing knowledge intensity of jobs (Hodgson, 1999). Economic processes are also highly intertwined with social processes: they are likely to be informal and reciprocal rather than formal and negotiated. Another important point is also the problem of the division of labor: as economic activity becomes mainly intellectual and requires the integration of specific and idiosyncratic skills, the task of dividing the job and assigning it to the most appropriate individuals becomes arduous, a “supervisory problem” (Hogdson, 1999) emerges and traditional hierarchical control may result increasingly ineffective. Not only specificity of know how makes it awkward to monitor the execution of tasks, more importantly, top-down integration of skills may be difficult because ‘the nominal supervisors will not know the best way of doing the job – or even the precise purpose of the specialist job itself – and the worker will know better’ (Hogdson,1999). We, therefore, expect that the organization of the economic activity of specialists should be, at least partially, self-organized. The aim of this thesis is to bridge studies from computer science and in particular from Peer-to-Peer Networks (P2P) to organization theories. We think that the P2P paradigm well fits with organization problems related to all those situation in which a central authority is not possible. We believe that P2P Networks show a number of characteristics similar to firms working in a knowledge-based economy and hence that the methodology used for studying P2P Networks can be applied to organization studies. Three are the main characteristics we think P2P have in common with firms involved in knowledge economy: - Decentralization: in a pure P2P system every peer is an equal participant, there is no central authority governing the actions of the single peers; - Cost of ownership: P2P computing implies shared ownership reducing the cost of owing the systems and the content, and the cost of maintaining them; - Self-Organization: it refers to the process in a system leading to the emergence of global order within the system without the presence of another system dictating this order. These characteristics are present also in the kind of firm that we try to address and that’ why we have shifted the techniques we adopted for studies in computer science (Marcozzi et al., 2005; Hales et al., 2007 [39]) to management science.

The Olive Tree, Vol. 8 Number 2, 2000

The Winter 2000 issue of The Olive Tree features articles about library projects, collections, technological innovations, and events at Fogler Library, University of Maine.

Investigation of diagenesis in sediment core CRP-1 from the Ross Sea, Antarctica

A diagenetic study was carried out on the cored Miocene section in CRP-1 by thin-section, X-ray diffraction, scanning electron microscope, electron microprobe and stable isotopic analysis. Carbonate (calcite, siderite) microconcretions occur locally within intergranular pores and open fractures, and some sands are cemented by microcrystalline calcite. Calcite cement at 115.12 mbsf (metres below sea floor) and possibly microconcretionary calcite at 44.62 mbsf record infiltration of meteoric waters into the section, consistent with sequence stratigraphic evidence for multiple glacial advances over the CRP-1 drillsite. Diagenetic carbonates incorporated carbon derived from both organic matter and marine carbonate. Carbon isotope data are consistent with microconcretion formation at shallow depths. Sandstones are poorly compacted and, despite containing a large component of chemically unstable grains, are virtually unaltered. Preservation of the chemically unstable grain component reflects the cold climate depositional setting and shallow maximum burial depths.

Siliceous microfossils in middle Eocene sediments of ODP Holes 120-748B and 120-749B

The Middle Eocene Climatic Optimum (MECO) is a major transient warming event that occurred at ~ 40 Ma and reversed a long-term cooling trend through the early and middle Eocene. We report the results of a high-resolution, quantitative study of siliceous microfossils at Ocean Drilling Program Sites 748 and 749 (Southern Kerguelen Plateau, Southern Ocean, ~ 58°S) across a ~ 1.4 myr interval spanning the MECO event. At both sites, a significant increase in biosiliceous sedimentation is associated with the MECO event. Rich siliceous planktonic microfossil assemblages in this interval are unusual in that they are dominated by ebridians, with radiolarians as a secondary major component. Silicoflagellates and diatoms comprise only a minor fraction of the assemblage, in contrast to siliceous microfossil assemblages that characterize modern Southern Ocean sediments. Based on our new siliceous microfossil records, we interpret two ~ 300 kyr periods of elevated nutrient availability in Southern Ocean surface waters which span the peak warming interval of the MECO and the post-MECO cooling interval. A diverse assemblage of large silicoflagellates belonging to the Dictyocha grandis plexus is linked to the rapid rise in sea-surface temperatures immediately prior to peak warmth, and a pronounced turnover is observed in both ebridian and silicoflagellate assemblages at the onset of peak warming. The interval of peak warmth is also characterized by high abundance of cosmopolitan ebridians (e.g., Ammodochium spp.) and silicoflagellates (e.g., Naviculopsis spp.), and increased abundance of tropical and subtropical diatom genera (e.g., Asterolampra and Azpeitia). These observations confirm the relative pattern of temperature change interpreted from geochemical proxy data at multiple Southern Ocean sites. Furthermore, rapid assemblage changes in both autotrophic and heterotrophic siliceous microfossil groups indicate a reorganization of Southern Ocean plankton communities in response to greenhouse warming during the MECO event.

Siliceous fossils in sediments of the Ibero-Moroccan shelf and adjacent deep sea plains

Siliceous skeletons were investigated in two core profiles (9 cores), one off Cap de Sines, Portugal and the other off Cap de Mazagan, Morocco. Total number of skeletons was determined per gram of dried sediment at different core depths of the fraction >21 µ. Results are compared with a core profile from the Arabian Sea. Diatoms are of four groups: (A) marine-planktonic, B) marine-benthic, (C) freshwater and (D) Tertiary species (Trinacria e.g.). Species from groups (B), (C) and (D) are redeposited in all cores taken at a water depth of greater than 100 m. Small numbers of Silicoflagellates and Radiolarians were found throughout the cores from the Ibero-Moroccan shelf. In the Arabian Sea core, Radiolarians were concentrated in distinct horizons in which Tertiary material was redeposited (40-50, 140-150, 250-260 cm). The number of siliceous skeletons per gram of dried sediment decreases more or less rapidly with increasing depth in all cores. Whereas about 2500 skeletons were found in sediments close to the surface, approximately 100 skeletons only were found in deeper (>40 cm) layers. Deeper horizons with more than 100 specimens were interpreted as redeposited material. This sediment contained robust skeletons, resistant against dissolution, as well as benthic and Tertiary material. The decrease of siliceous skeletons relative to core depth depends upon the sedimentation rate. Where the sedimentation rate is high, the opal dissolution zone extends down to 30-60 cm, where the sedimentation rate is low, it is located at 10-30 cm. Below these depths opals disappears. These zones also have approximately the same age (4000 years) everywhere. Siliceous skeletons dissolve differentially, first the Silicoflagellates disappear, second the Diatoms, third the Radiolarians, and fourth the Sponge Spicules. Surface structure of skeletons from near the opal dissolution zones are similar to those of skeletons treated with NaOH. Tertiary diatoms (Trinacria e. g.) and benthic diatoms (Campylodiscus e.g.) dissolve less rapidly than skeletons of modern planktonic diatoms (Coscinodiscus e.g.). The time control of the opal dissolution zones appeared rather independent of various oceanic influences. No evidence was found for effects from upwelling either off Portugal or off Morocco. No difference in dissolution rates was recorded between the abyssal plains lying off these two areas. Likewise, there was no change in solution rates from Pleistocene to Holocene within either one of the abyssal plains. The Mediterranean outflow, which is enriched in dissolved silica, apparently had no effect on dissolution rates of siliceous skeletons in the sediment.

Biostratigraphy of sediment core CRP-3 from the Ross Sea, Antarctica

Early Oligocene siliceous microfossils were recovered in the upper c. 193 m of the CRP-3 drillcore. Although abundance and preservation are highly variable through this section, approximately 130 siliceous microfossil taxa were identified, including diatoms, silicoflagellates, ebridians, chrysophycean cysts, and endoskeletal dinoflagellates. Well-preserved and abundant assemblages characterize samples in the upper c. 70 m and indicate deposition in a coastal setting with water depths between 50 and 200 m. Abundance fluctuations over narrow intervals in the upper c. 70 mbsf are interpreted to reflect environmental changes that were either conducive or deleterious to growth and preservation of siliceous microfossils. Only poorly-preserved (dissolved, replaced, and/or fragmented) siliceous microfossils are present from c. 70 to 193 mbsf. Diatom biostratigraphy indicates that the CRP-3 section down to c. 193 mbsf is early Oligocene in age. The lack of significant changes in composition of the siliceous microfossil assemblage suggests that no major hiatuses are present in this interval. The first occurrence (FO) of Cavitatus jouseanus at 48.44 mbsf marks the base of the Cavitatus jouseanus Zone. This datum is inferred to be near the base of Subchron C12n at c. 30.9 Ma. The FO of Rhizosolenia antarctica at 68.60 mbsf marks the base of the Rhizosolenia antarctica Zone. The FO of this taxon is correlated in deep-sea sections to Chron C13 (33.1 to 33.6 Ma). However, the lower range of R. antarctica is interpreted as incomplete in the CRP-3 drillcore, as it is truncated at an underlying interval of poor preservation: therefore, an age of c. 33.1 to 30.9 Ma is inferred for interval between c. 70 and 50 mbsf. The absence of Hemiaulus caracteristicus from diatom-bearing interval of CRP-3 further indicates an age younger than c. 33 Ma (Subchron C13n) for strata above c. 193 mbsf. Siliceous microfossil assemblages in CRP-3 are significantly different from the late Eocene assemblages reported CIROS-1 drillcore. The absence of H. caracteristicus, Stephanopyxis splendidus, and Pterotheca danica, and the ebridians Ebriopsis crenulata, Parebriopsis fallax, and Pseudoammodochium dictyoides in CRP-3 indicates that the upper 200 m of the CRP-3 drillcore is equivalent to part of the stratigraphic interval missing within the unconformity at c. 366 mbsf in CIROS-1.

Planktonic foraminiferal stratigraphy of sediments from ODP Leg 173 sites

Planktonic foraminifers recovered from five sites drilled off western Portugal during Ocean Drilling Program Leg 173 are documented. Hole 1065A yielded planktonic foraminifers from Miocene sediments in Sections 173-1065A-1R-1 through 6R-2. Hole 1067A penetrated middle Eocene sediments containing planktonic foraminifers in Section 173-1067A-1R-1 through Lower Eocene planktonic foraminiferal horizons to Section 12R-CC. Hole 1068A yielded planktonic foraminiferal assemblages from middle Eocene sediments at Section 173-1068A-1R-1 to Maastrichtian sediments at Section 173-1068A-15R-3, whereas Hole 1069A contained middle Eocene taxa in Section 173-1069A-1R-1 through Campanian/Maastrichtian forms in Section 173-1069A-15R-2. All of the planktonic foraminifers recovered from these sites are of poor to moderately good preservation and are variable in abundance. Hole 1070A yielded only six planktonic foraminifers, with the assemblages being dominated by benthic foraminifers and fish teeth. The co-occurrence of other microfossil groups, including benthic foraminifers, are only briefly discussed here. The lower Miocene biosiliceous facies recorded in Hole 1065A is considered to be coeval with a similar facies found in onshore sections farther to the east, in southern Spain.