This study explores the relationship between a firm’s competitive strategy and its degree of reliance on workers with long-term employment(LTE) contracts. We find support for our hypothesis that firms competing on the basis of quality will rely more...
This study explores the relationship between a firm’s competitive strategy and its degree of reliance on workers with long-term employment(LTE) contracts. We find support for our hypothesis that firms competing on the basis of quality will rely more heavily on LTE contract employees than firms pursuing a low-cost strategy or a mixed strategy. Additionally, we find that the percent of workers with implicit LTE contracts is higher in firms with an innovation strategy than in firms with a low-cost strategy or a mixed strategy.