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Journal of Management, Vol. 29, No. 5, 681-703 (2003)
DOI: 10.1016/S0149-2063_03_00031-X

Employment Flexibility and Firm Performance: Examining the Interaction Effects of Employment Mode, Environmental Dynamism, and Technological Intensity

David P. Lepak

School of Management and Labor Relations, Human Resource Management Department, Rutgers University, 94 Rockafeller Road, Piscataway, NJ 08854, USA

Riki Takeuchi

Robert H. Smith School of Business, University of Maryland, 1308C Van Munching Hall, College Park, MD 20742, USA

Scott A. Snell

Cornell University, 393 Ives Hall, Ithaca, NY 14853, USA

Building on recent arguments advocating the benefits of different types of employment flexibility, we examine the relationships among the four types of employment (knowledge-based, job-based, contract, and alliances) and firm performance. The results indicate that a greater use of knowledge-based employment and contract work is positively associated with firm performance. The results also indicate that both knowledge-based employment and contract work positively interact with job-based employment to impact firm performance. In addition, the relationships between knowledge-based employment and firm performance, as well as between job-based employment and firm performance, vary across levels of technological intensity.


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M. Bhattacharya, D. E. Gibson, and D. H. Doty
The Effects of Flexibility in Employee Skills, Employee Behaviors, and Human Resource Practices on Firm Performance
Journal of Management, August 1, 2005; 31(4): 622 - 640.
[Abstract] [PDF]