Unions and the adoption of high-performance work systems in Korea: moderating roles of firms' competitive strategies

Abstract

An unresolved question about the relationship between union representation and the adoption of high-performance work systems (HPWSs) is which factors affect the roles of unions toward the HPWS adoption. Using data from a 2009 multi-industry survey of 301 Korean firms, the author empirically examines the impacts of unions on the adoption of HPWSs. From the strategic choice perspective, he focuses on the roles of firms’ competitive strategies regarding the unions’ behaviors toward the use of HPWSs. The results indicate that Korean unions are negatively associated with the adoption of HPWSs when employers choose to implement more comprehensive HPWSs. Evidence suggests, however, that employers’ differentiation strategies moderate the union's negative impacts even when the employers comprehensively use the HPWSs. It implies that the differentiation strategy is a key factor to resolve the conflicts between unions and employers concerning the adoption of HPWSs.