Trust and the Flexible Firm: International Comparisons

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Abstract
Japanese and German manufacturers are more successful than their counterparts in Britain and France in achieving organizational flexibility, which depends on labor‐management trust and cooperation. This trust developed in Germany and Japan over the post‐World War II decades through the institutionalization of a system of labor‐management consultation. This paper examines the role of power and social norms to explain why trust‐building systems of joint consultation take hold in one place and not in another.

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