2023-09-28 14:46:10 +00:00
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abstract: 'Given consistent evidence of its social benefits but questions about its
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market viability, this paper examines the conditions under which
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workplace democracy can be understood as a ``real utopia{''''}; a viable
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form of organization that is both economically productive and socially
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welfare enhancing. Conceptualizing democratic firms as organizations
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with formally distributed authority and collectivist norms, we argue
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that democratic firms will operate more productively in knowledge
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intensive industries, compared with conventional firms in the same
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industries, because they give authority to those with relevant knowledge
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and encourage intrafirm information sharing. Next, focusing on intrafirm
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wage inequality as a key social welfare outcome, we argue that
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knowledge-intensive sectors are also settings where the benefits of
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workplace democracy are likely to be greater. Knowledge intensive
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industries tend to generate greater intrafirm inequality through the
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adoption of marketbased employment policies and reliance on unique
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expertise, yet the formal structure and collectivist norms of democratic
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firms are likely to limit thesemechanisms of inequality, generating
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inequality reductions. We test these hypotheses with longitudinal linked
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employer-employee data from French cooperatives and conventional firms,
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including firms that shift organizational structures over time. We find
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robust support for our hypothesis about economic performance andmoderate
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support for our hypothesis about social performance.'
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affiliation: 'Young-Hyman, T (Corresponding Author), Univ Pittsburgh, Katz Grad Sch
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Business, Pittsburgh, PA 15260 USA.
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Young-Hyman, Trevor, Univ Pittsburgh, Katz Grad Sch Business, Pittsburgh, PA 15260
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USA.
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Magne, Nathalie, Univ Montpellier 3, Site St Charles, F-34080 Montpellier, France.
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Kruse, Douglas, Rutgers State Univ, Sch Management \& Labor Relat, Piscataway, NJ
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08854 USA.'
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author: Young-Hyman, Trevor and Magne, Nathalie and Kruse, Douglas
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author-email: 'try6@pitt.edu
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nathalie.magne@univ-montp3.fr
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dkruse@smlr.rutgers.edu'
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author_list:
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- family: Young-Hyman
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given: Trevor
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- family: Magne
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given: Nathalie
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- family: Kruse
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given: Douglas
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da: '2023-09-28'
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doi: 10.1287/orsc.2022.1622
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files: []
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issn: 1047-7039
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journal: ORGANIZATION SCIENCE
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keywords: 'organizational structure; social responsibility; compensation; power and
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politics; organizational design; organizational form; wage inequality'
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keywords-plus: 'INCOME INEQUALITY; ORGANIZATIONS; WORKER; COOPERATIVES; MARKET; LABOR;
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FIRMS; LIFE; COMMITMENT; CAPITALIST'
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language: English
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month: JUL-AUG
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number: '4'
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number-of-cited-references: '118'
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orcid-numbers: 'Magne, Nathalie/0000-0003-2578-094X
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Young-Hyman, Trevor/0000-0003-2111-3189
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Kruse, Douglas/0000-0002-7121-7616'
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pages: 1353-1382
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papis_id: 2fe0a781de9333d41bf046a7f934a204
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ref: Younghyman2023realutopia
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times-cited: '1'
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title: A Real Utopia Under What Conditions? The Economic and Social Benefits of Workplace
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Democracy in Knowledge-Intensive Industries
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2023-10-01 08:15:07 +00:00
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type: article
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2023-09-28 14:46:10 +00:00
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unique-id: WOS:001054916900001
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usage-count-last-180-days: '4'
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usage-count-since-2013: '15'
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volume: '34'
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web-of-science-categories: Management
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year: '2023'
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