Works councils' use of influence tactics: A comparison between Germany and the Netherlands
The relationship between works council and management is of great importance for works councils' performance. In this study, we focus on the influence tactics used by works councils to obtain more voice and influence in decision-making processes. We distinguish between the following six influence tactics: consulting the labor union, cooperating, blocking, exchange, upward appeal, and emphasizing legitimacy. We study the differences between German and Dutch works councils, and between business with different levels of internationalization. We perform regression analyses on information from 500 Dutch and 853 German questionnaires. The use of influence tactics is positively related to voice and influence. In Germany, formal tactics, such as emphasizing legitimacy and consulting the labor union, are effective, as well as cooperating with management. In the Netherlands, cooperation is most effective. Organizations with foreign headquarters are least likely to be influenced, compared to those that are operating independently and those with domestic headquarters. These organizations benefit from the tactics of cooperating and consulting the labor union. In Germany, there are no differences in voice and influence between different levels of internationalization. In organizations with a domestic owner, influence tactics are most effective. Cooperation is an effective influence tactic in both countries, mostly in organizations that do not operate independently.
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