Yearly conference on productivity at

Saltsjöbaden 2011Annette Nylund 

Ph.D. Cand. at Royal Institute of Technology. KTH.Department of Industrial Economics and Management. INDEK.

Researcher at Swedish Environment Authority

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Signpost

• The background

• Articles that explore data and theory• New article about two management models

and their prediction on productivity

• Conclusion..?

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• evaluations of the relevance• costs • benefits of initiatives...

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Sixth and Seventh European Research Framework Programmes

EU Commission

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European policies evidence-based and built on

harmonized country data:

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• EU project Meadow 2008 – 2010• Swedish Meadow Survey 2009/2010• Yearbook on productivity 2010• Book Learning organisations Matter 2011• Yearbook on productivity 2011• … about 10 papers are published• ... other papers and thesis 2011

New Guideline and new data

Articles based on Meadow...• Work organisation and competence

development in Swedish firms. 2010• Firms environment and competence

portfolio. 2011• Theoretical TQM principles versus the use of

contemporary strategies. in progress 2011• Two management models predicting

productivity; TQM compared with used contemporary bundles of practices of learning and work organisation. in progress 2011…

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Work organisation and competence development

in Swedish firms

in Statistics Sweden

Yearbook on productivity 2010

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Individual learning

Decentra-lisation

Numerical flexibility

Structural learning

Four Composite Indicators“exploring the black box”

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Incidences across…

• Firm sizes• Industries• Foreign or national ownership

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Incidences across firm sizes. mean values

15-49 50-249 250+

Sum 2.11

0.45 0.40 0.40

1.91 2.08 2.27

Individual learning

Four composite indexes

Structural learning

Numerical flexibilityDecentralisation

Mean

0.650.700.320.43

The firms are weighted after their own industry's proportion of value added in the business sector.except for firms in the financial business sector since they still lack of harmonised value added data

0.56 0.61 0.73

0.63 0.69 0.770.26 0.35 0.38

Table 14 from Yearbook on productivity 2010

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Result of four regression models

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INDIVIDUAL LEARNING

STRUCTURAL LEARNING

DECENTRALISATION NUMERICAL FLEXIBILITY

18 Industries

Foreign 

Small firms  -0.12***  -0.05***  -0.06*** 

Large firms  0.09**  0.05**  0.05*** 

Young_ < 35  -0.13** 

Old_ > 50  -0.24** 

HighEdc university1  0.15***  0.19*** 

LowEd compulsory2 

Women 3  0.06*  0.15**  0.09*** 1) University = ≥3 year or longer; 2) Compulsory school = 9 years schooling; 3) Woman. percentage*** High significance. 0.01 level. ** rather high significance. 0.05 level. * low significance. 0.10 level.

Table 19 from Yearbook on productivity 2010

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Firms environment and competence portfolio

in Statistics Sweden

Learning organisations Matter 2011

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Individual learning

Decentra-lisation

Numerical flexibility

Structural learning

Four Composite Indicators“exploring the black box”

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Latent hidden patterns - bundles of practices

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Latent hidden patterns - bundles of practices

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Latent hidden patterns - bundles of practices

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Latent hidden patterns - bundles of practices

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Latent hidden patterns - bundles of practices

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Latent hidden patterns - bundles of practices

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Latent hidden patterns - bundles of practices

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Latent hidden patterns - bundles of practices

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Latent hidden patterns - bundles of practices

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Seven bundles of practices in Swedish firmsLatent hidden patterns - bundles of practices

Numerical

flexibility

Individual learning

Decentra-lisation

Structural learning

Four Composite Indicators“exploring the black box”

Structural learning

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Structural learning

Numerical flexibility

Seven bundels of practices“exploring the black box”

Boundaries of competence

• Outsourcing and cooperation; in design. production. procurement ... they cluster

• Cooperation in different R&D activities ... they cluster

• Foreign ownership and large size firms ... they cluster

• Customised versus standardised production

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No relationship in general between

Seven bundles of learning and work practices&

Firms boundaries

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Numerical flexibility&

Large sized firms &

Foreign ownership

No relationship in general betweenExcept

Two management models predicting productivity

TQM compared with used contemporary bundles of practices of learning and work

organisation

in Statistics Sweden

Yearbook on productivity 2011

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Measurement in US (Hackman and Wageman. 1995). They are:i. Problem solving teamsii. Investment in trainingiii. CEO:s responsibility throughout the organisationiv. Supplier relationv. Customer preferencesvi. Bench marking

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Six TQM principles

Regression models predicting value added per employee

Variables Significance level

Significance level

Significance level

Multi-index bundles of practices (multi7) 0.002    TQM six principles   0.02  TQM six principles + contr  contractors     0.07Also controlling for: Fact_work_contract Incl. in index not included 0.10Also included: HighEdPerc 0.001 0.0001 0.002

For_own 0.0001 0.69 0.003Percentage over 50 0.03 0.07 0.07ICT_Cust_Suppl_Syst 0.06 0.03 0.45WomenPerc 0.06 0.30 0.09

Also controlling for: Customised_ or standardised products; sizes of firm; 20 industry groups; part of a group of firms.

yes yes yes

R-Square (R2) 0.17 0.11 0.142011-10-05

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Prel. conclusionThe bundles of used learning and work practices predicts higher productivity better than TQM

The difference between the two models is that •Firms using bundles include temporary contracts

•Firms using TQM includes instead:- cooperation and outsourcing

- cooperation with use of ICT - and cooperation in external R&D - many direct reporting departments to CEO

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Thank You!

annette.nylund@av.se

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