Management communication, unionization, FDI and company performance in a developing country

Croucher, Richard and Rizov, Marian and Goolaup, Ram (2014) Management communication, unionization, FDI and company performance in a developing country. Evidence-based HRM: a Global Forum for Empirical Scholarship, 2 (2). pp. 164-175. ISSN 2049-3983

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Management communication, unionization, FDI and company performance in a developing country

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Abstract

Purpose – The purpose of this paper is to examine the associations between management direct
communication to employees, unionization, foreign direct investment (FDI) and company performance
in Mauritius, Africa’s most successful economy.
Design/methodology/approach – The authors use firm data from a survey conducted in Mauritius
in late 2011. The authors conduct regression analysis to study the relationship between direct
communication, unionization and performance conditional on ownership type.
Findings – Mauritian labour unions, in common with their counterparts from mainland Africa, are
strongest in the public sector. They have been characterized as weak and lacking in influence on
management. Yet the authors find a strong association between unionization and management
communication in the private sector. The authors also find a positive association between direct
communication and company performance which the authors argue is likely to be an indirect
consequence of unionization. FDI shows no particular effects.
Research limitations/implications – It appears that the consequences of union presence transcend
pay and conditions. The effects are unexpectedly marked, particularly when the stress by some
authors on union weakness in the private sector is taken into account.
Originality/value – It may be that local unions’ strong focus on the enterprise – a form of
representation favoured by US-based multinational companies, constitutes a strength in stimulating
management communication to employees by focusing union activities at that level. Whilst the
authors have suggested that this is unlikely to be primarily a result of conscious union strategy,
the enterprise focus may serve to buttress existing employee attitudes. In any event, unionization is
certainly closely associated in this African country with a practice that is linked to positive economic
effects at the enterprise level.

Keywords:Work engagement and commitment, Development, FDI, Employee motivation, International human resource management, HR Practices in multinational organizations, Human resource management (general), Inter-organizational relations, Work performance and productivity, Management communication, Labour unions, Company performance, JCNotOpen
Subjects:L Social studies > L140 Econometrics
N Business and Administrative studies > N220 Institutional Management
N Business and Administrative studies > N215 Organisational Development
L Social studies > L110 Applied Economics
N Business and Administrative studies > N200 Management studies
Divisions:Lincoln International Business School
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ID Code:19550
Deposited On:13 Nov 2015 12:20

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