Working time management and SME performance in Europe

Abstract

Purpose -This paper aims to explore the management of working time flexibility and firm performance, measured by operating hours, in small and medium-sized enterprises (SMEs) in Europe. Design/methodology/approach -The paper analyses the European Capital Operating time, Work and Employment Survey (EUCOWE), designed to collect workplace information on operating hours. With data on more than 17,000 establishments in six European countries -France, Germany, The Netherlands, Portugal, Spain and the UK -the paper analyses working time patterns and operating hours.Findings -The authors show the positive relationship between company size and operating times and how SMEs make more limited use of more advanced forms of working-time organisation that may allow them to extend their operating hours. The use of less complex working time measures such as overtime does not have the same positive association with operating hours. However, the results also highlight that smaller establishments can still benefit from the adoption of certain working time practices. The results suggest that the influence of the regulatory environment on the use of working practices or the duration of operating hours is not straightforward, and as such the impact of national regulatory frameworks cannot be discounted in the country-specific differences identified. Originality/value -The paper uses the first comparable data on operating hours and working patterns to demonstrate the limitations on SME operating times across European countries.

Workplace Flexibility Practices in SMEs: Relationship with Performance via Redundancies, Absenteeism, and Financial Turnover

“…This result is in line with those that point to SME inherent flexibilities in adopting practices, yet because of the sense of informality in the way SMEs adopt practices, the latter may limit the development of more complex working arrangements (Smith and Zagelmayer ; Tocher and Rutherford ). Moreover, the fact that SMEs have more limited resources to withstand market pressures arising from recessionary condition—and, thereby, have a high incentive to implement human resource innovations—may also frustrate a consistent, systematic development of WFP bundles because of the lack of HRM specialization and/or resources made available to train managers and hence raise their awareness of the potential benefits derived from WFPs (Tocher and Rutherford ).…”

“…This result is in line with those that point to SME inherent flexibilities in adopting practices, yet because of the sense of informality in the way SMEs adopt practices, the latter may limit the development of more complex working arrangements (Smith and Zagelmayer 2010; Shows that a continuous measure is used for the respective workplace performance indicator, characteristic, or practice. All other measures used are binary measures, taking the value one if the WFP is used and zero if the WFPs is not used by the SME.…”

“…; Chandler and McEvoy ; Deshpande and Golhar ; Georgiadis and Pitelis ; Matlay ; Tocher and Rutherford ). This research deficit has begun to be addressed (e.g., Smith and Zagelmayer ; Tocher and Rutherford ) and this paper seeks to make a further contribution in this regard.…”

“…Moreover, the fact that SMEs have more limited resources to withstand market pressures arising from recessionary condition—and, thereby, have a high incentive to implement human resource innovations—may also frustrate a consistent, systematic development of WFP bundles because of the lack of HRM specialization and/or resources made available to train managers and hence raise their awareness of the potential benefits derived from WFPs (Tocher and Rutherford ). Hence, there is an expectation in the literature that SMEs may implement a mix of irregular, informal practices (Smith and Zagelmayer ). By contrast, this paper shows that a rather consistently high number of WFPs are implemented in the sample of SMEs analyzed, and as a consequence, it is this degree of implementation that is an unexpected, positive finding.…”

“…The literature on human resource management (HRM) and, more specifically, upon WFPs within SMEs, has been historically underdeveloped, as studies have tended to focus upon larger organizations, possibly because of their greater resources and accompanying specialization in management functions, including the design and implementation of human resource strategies (Cassell et al 2002;Chandler and McEvoy 2000;Deshpande and Golhar 1994;Georgiadis and Pitelis 2012;Matlay 2002;Tocher and Rutherford 2009). This research deficit has begun to be addressed (e.g., Smith and Zagelmayer 2010;Tocher and Rutherford 2009) and this paper seeks to make a further contribution in this regard.…”