Company labour flexibility strategies in The Netherlands: an institutional perspective

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Abstract
Despite important differences in labour flexibility patterns in different countries and despite clear indications of the important role of institutional factors with respect to HRM, to date there has been little research on the interaction between the institutional context and the HRM of companies. This paper seeks to address this issue with regard to labour flexibility strategies and reveals a promising approach to learning how the development of a topic, such as labour flexibility, takes place in practice. The case of The Netherlands clearly shows the interaction between the institutional context and company flexibility strategies. The institutional context was found to influence company strategies but, in return, these strategies were later seen to impact the institutional setting. In The Netherlands the system of labour relations has been adapted in response to calls from companies for more flexible labour relations. This has led to changes in labour laws and regulations, which, in turn, have stimulated new company strategies.