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Employer Association Responses to the Effects of Bargaining Decentralization in A ustralia and I taly: Seeking Explanations from Organizational Theory
Author(s) -
Sheldon Peter,
Nacamulli Raoul,
Paoletti Francesco,
Morgan David E.
Publication year - 2016
Publication title -
british journal of industrial relations
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.665
H-Index - 70
eISSN - 1467-8543
pISSN - 0007-1080
DOI - 10.1111/bjir.12061
Subject(s) - decentralization , association (psychology) , competition (biology) , sustainability , economics , resource dependence theory , microeconomics , business , public economics , psychology , market economy , ecology , psychotherapist , biology
The literature has neglected to analyse employer associations as organizations facing potential environmental threats to their financial sustainability. We examine associations' responses to collective bargaining decentralization, a major, contemporary threat. Using a qualitative, comparative case approach, we examine eight associations — four each in A ustralia and I taly — to develop a model of response types. Stronger decentralization effects increase associations' exposure to new and heightened competition, which in turn produces stronger association responses. These include prioritizing commercial over associational objectives. We analyse responses using strategic choice and resource dependence theories, finding that associations use both. However, the decision how to combine them reflects environmental conditions as well as choices linking organizational purpose and financial sustainability.