A Theoretical Framework to Understand the Adoption of High-Involvement Work Practices and Bundles

Abstract

The relationship between high-involvement work and HR practices and performance is well established empirically, along with the recognition that these practices are most effective when operating as part of a bundle or system of complementary practices (e.g., Arthur 1992; MacDuffie 1995; Ichniowski et al. 1994; Huselid 1995; Milgrom and Roberts 1995). However, given the performance implications of such practices, the question arises as to why not all organizations are using them. Alchian (1950) stated that "whenever successful enterprises are observed, the elements common to these observable successes will be associated with success and copied by others .... " Not only is imitation the sincerest form of flattery. It is also the most effective method for organizations to absorb the learning undertaken by other organizations (March 1991). However, despite the laudatory praise on imitation, imitation of high-involvement work systems1 is very slow.