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Employment externalisation in response to a temporary exogenous shock: an adjustment costs perspective

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Employment externalisation in response to a temporary exogenous shock: an adjustment costs perspective. / Jensen, Jonathan D; Anand, Rahul; Foss, Nicolai.
I: Industry and Innovation, 27.02.2023.

Publikation: Bidrag til tidsskrift/Konferencebidrag i tidsskrift /Bidrag til avis › Tidsskriftartikel › Forskning › peer review

Harvard

Jensen, JD, Anand, R & Foss, N 2023, 'Employment externalisation in response to a temporary exogenous shock: an adjustment costs perspective', Industry and Innovation.

APA

Jensen, J. D., Anand, R., & Foss, N. (2023). Employment externalisation in response to a temporary exogenous shock: an adjustment costs perspective. Industry and Innovation. adv. onlinepublikation.

CBE

Jensen JD, Anand R, Foss N. 2023. Employment externalisation in response to a temporary exogenous shock: an adjustment costs perspective. Industry and Innovation.

MLA

Jensen, Jonathan D, Rahul Anand og Nicolai Foss. "Employment externalisation in response to a temporary exogenous shock: an adjustment costs perspective". Industry and Innovation. 2023.

Vancouver

Jensen JD, Anand R, Foss N. Employment externalisation in response to a temporary exogenous shock: an adjustment costs perspective. Industry and Innovation. 2023 feb. 27. Epub 2023 feb. 27.

Author

Jensen, Jonathan D ; Anand, Rahul ; Foss, Nicolai. / Employment externalisation in response to a temporary exogenous shock: an adjustment costs perspective. I: Industry and Innovation. 2023.

Bibtex

@article{f5a8ab5a962d4d7483e1f0b749b49a21,
title = "Employment externalisation in response to a temporary exogenous shock: an adjustment costs perspective",
abstract = "We examine the externalisation of labour as a strategic response to a temporary exogenous shock (i.e. COVID-19). Combining ideas from employment externalisation theory and the CATO framework (which are both extensions of transaction costs economics), we argue that firms that are hit harder by the COVID-19 shock are more likely to plan hiring freelancers that replace permanent employees. The mechanism we argue for is that firms seek to reposition quickly, which lowers comparative adjustment costs and reduces constraints on switching employment modes in future, depending on the extent of task co-specialisation. Analysing survey data obtained from 1,090 Danish small medium enterprises during the initial COVID-19 lockdown supports our hypotheses. Our findings contribute to the research on strategic responses to crises and provide novel understanding of why firms may externalise employment.",
keywords = "TCE, Exogenous shocks, COVID 19",
author = "Jensen, {Jonathan D} and Rahul Anand and Nicolai Foss",
year = "2023",
month = feb,
day = "27",
language = "English",
journal = "Industry and Innovation",
issn = "1366-2716",
publisher = "Routledge",

}

RIS

TY - JOUR

T1 - Employment externalisation in response to a temporary exogenous shock: an adjustment costs perspective

AU - Jensen, Jonathan D

AU - Anand, Rahul

AU - Foss, Nicolai

PY - 2023/2/27

Y1 - 2023/2/27

N2 - We examine the externalisation of labour as a strategic response to a temporary exogenous shock (i.e. COVID-19). Combining ideas from employment externalisation theory and the CATO framework (which are both extensions of transaction costs economics), we argue that firms that are hit harder by the COVID-19 shock are more likely to plan hiring freelancers that replace permanent employees. The mechanism we argue for is that firms seek to reposition quickly, which lowers comparative adjustment costs and reduces constraints on switching employment modes in future, depending on the extent of task co-specialisation. Analysing survey data obtained from 1,090 Danish small medium enterprises during the initial COVID-19 lockdown supports our hypotheses. Our findings contribute to the research on strategic responses to crises and provide novel understanding of why firms may externalise employment.

AB - We examine the externalisation of labour as a strategic response to a temporary exogenous shock (i.e. COVID-19). Combining ideas from employment externalisation theory and the CATO framework (which are both extensions of transaction costs economics), we argue that firms that are hit harder by the COVID-19 shock are more likely to plan hiring freelancers that replace permanent employees. The mechanism we argue for is that firms seek to reposition quickly, which lowers comparative adjustment costs and reduces constraints on switching employment modes in future, depending on the extent of task co-specialisation. Analysing survey data obtained from 1,090 Danish small medium enterprises during the initial COVID-19 lockdown supports our hypotheses. Our findings contribute to the research on strategic responses to crises and provide novel understanding of why firms may externalise employment.

KW - TCE

KW - Exogenous shocks

KW - COVID 19

UR - http://www.scopus.com/inward/record.url?scp=85149421974&partnerID=8YFLogxK

M3 - Journal article

JO - Industry and Innovation

JF - Industry and Innovation

SN - 1366-2716

ER -