National Labour Relations in Internalized Markets: A Comparative Study of Institutions, Change, and Performance - Book Review

Administrative Science Quarterly, Sept, 2002 by Stephen J. Havlovic

Franz Traxler, Sabine Blaschke, and Bernhard Kittel. New York: Oxford University Press, 2001. 339 pp. $60.00.

This book is the result of research conducted under an Austrian research grant on "internationalization, labour relations, and competitiveness." The authors state that the book will be of direct interest to the disciplines of sociology, political science, and economics. It is likely that the book will also be of interest to those involved in the study of comparative industrial relations, international business, and organizational theory.

The authors attempt to assess two primary research issues empirically: (1) "Does internationalization impose pressures for change and more specifically, for convergence on national labour-relations systems?" and (2) "Under conditions of international markets, cross-national differences in institutional arrangement may have an increasing impact on national economic performance." These research questions are assessed using longitudinal data covering three decades (1979-1998) and 20 Organization for Economic Cooperation and Development (OECD) countries (Austria, Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, the United Kingdom, and the United States).

The book consists of 21 chapters organized into five themes: "Part I: The Theoretical and Methodological Framework of Analysis"; "Part II: The Organization of Interests: Patterns and Dynamics"; "Part III: Wage Regulation and Bargaining"; "Part IV: Labour Relations and Economic Performance"; and "Part V: Instead of Convergence: Neoliberalism and Lean Corporatism as Alternatives." The book includes an extensive review of the relevant literature supporting the various theoretical perspectives. The focus is on examination of the "hypotheses on the change in and performance of labour relations." This includes three change hypotheses, referred to as "convergence," "disorganization," and "path-dependency," and four performance hypotheses, characterized as "neoclassical," "corporatist," "neoliberal," and "humpshaped." Based on extensive statistical analyses, the authors found that "there is no clear evidence of market-driven convergence" (p. 60) in terms of forces of change and "no empirical support either for corpor atism or the hump-shape hypothesis" in terms of performance outcomes (p. 239).

The book reflects a rigorous and highly advanced empirical design. This is both a strength and a weakness. The advanced theoretical and statistical presentations limit the readability and utility of the book to only the most advanced academics. To fully comprehend the empirical findings, the reader must have a good understanding of pooled time series regression analysis. For those holding or pursuing doctoral degrees related to international labor relations and/or international markets, the book will be viewed as an important examination of the theories listed above and, as such, will be essential reading for those studying or researching these theories.

The thoroughness of the authors' quantitative research is apparent throughout the book. A prior understanding of comparative or international industrial relations is a prerequisite for the reader to fully comprehend the extensive series of tables containing the quantitative results. While the text is rich with findings and technical information, this also makes for tedious and often difficult reading. The degree of difficulty is compounded by the extensive use of variable initials instead of variable names, forcing the reader to struggle with identifying the variables in the results tables. In a number of instances, greater use of graphs or charts could have made the study results easier for the reader to grasp and comprehend. The section chapters containing the results of hypothesis testing also could have been presented in a more visible manner (i.e., a summary table or listing).

The book ends with a series of brief summary chapters. A single, more comprehensive concluding chapter would have been more useful, however, particularly if the authors had highlighted their main findings. As it stands, it is up to the reader to tease out the dominant themes and findings.

While perhaps only the dedicated industrial sociologist or labor economist will read this book cover to cover, there are chapters that will prove to be useful references for a broader range of academic scholars interested in industrial relations or international business. The chapters reporting the theoretical tests will undoubtedly prove to be important scholarly references. The importance of this theoretical research will make this book a sought-after resource in university libraries around the world.