Flexibility in Norwegian and UK firms: competitive pressure and institutional embeddedness

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Abstract
Discusses critically the concept of numerical flexibility arguing that strategies for numerical flexibility may in part be viewed as “emergent” strategies. Argues further that “emergent” strategies evolve as responses to the national institutional context. This context comprises laws and regulations which constrain firms from introducing numerical flexibility and trade unions which, acting on behalf of their members, will attempt to limit the scope of numerical flexibility. Demonstrates that since the 1980s the institutional contexts in which Norwegian and UK firms operate have diverged significantly, leading to expected differing rates of increased use of numerical flexibility. This is tested through a multivariate analysis of variations in numerical flexibility at the firm level on the basis of data from the 1995 Euronet‐Cranfield Survey.