The adoption of innovative work practices in service establishments

Abstract

Using data from the 1994 US National Establishment Survey, the author investigates differences between manufacturing and service establishments in the use of five innovative work practices: total quality management, self-managed teams, job rotation, job sharing and flextime. Service establishments are more likely to use job sharing and flextime. Manufacturing establishments are more likely to use total quality management and self-managed teams. These results hold when controlling for establishments' business strategies, worker demographics, institutional connections and use of technology. Determinants of adoption of total quality management, self-managed teams and flextime also varied by sector.