Trade union influence on innovation in the British private sector: Direct and indirect paths

Abstract

This article examines relationships between trade unions and firms’ innovation activity. Drawing on nationally representative data covering 1,384 firms in the UK, the article employs probit analysis to estimate the effect of trade union representation at the workplace on different types of innovation. The findings show significant and positive correlations between trade union representation and the introduction of new processes and new methods of marketing. The study also found a positive and moderately significant indirect effect on innovation arising from union influence on training provision and employee involvement practices. In addition, when unions are associated with shaping long-term oriented staffing practices, the positive indirect effects are strengthened.