Globalisation, ICT and part-time work: trends in the OECD

Employment Relations Record, Jan, 2005 by Paul L. Nesbit

This article presents an examination of the trends associated with globalisation, information and communication technology (ICT) and part-time work arrangements in OECD countries. Examining these trends provides insight into the debate about convergent/divergent effects of globalisation and ICT have on work arrangements. Our review suggests that OECD countries are highly global economies that have taken a lead in the adoption of ICT's especially the Internet. There is however, considerable diversity in globalisation levels and ICT adoption within the OECD. Part-time work has tended to increase over the period 1990 to 1993 with a few exceptions. Against this backdrop a relationship between increasing Internet usage and part-time work is demonstrated. This has implications for convergence/divergence arguments.

INTRODUCTION

Despite a lack of consensus in its definition and difficulty in its measurement globalisation and its impact on work has received considerable research attention in recent years (Tuller, 1991; Scholte, 2000; Andersen and Herbertsson, 2003; Makhijia, Kwangsoo, and Williamson, 1997). A central aspect of globalisation is the notion of greater integration and interdependence between countries and regions of the globe. While these growing linkages are often economic and political, globalisation has social, environmental and cultural aspects as well (Daft, 2000). However, it is the economic dimension that has received most interest in terms of its effects on nations and it has been argued that globalisation is leading to the creation of a single global economy transcending and integrating the world's major economic regions (Ohmae, 1990). There are those who are more cautious in interpretations of the novelty of current international integration (Hirst and Thompson, 1999), nevertheless, as argued by Du Gay (1999), 'globalisation has played a crucial role in transforming the character of Western government's perceptions of the ways in which their own national economies should be managed, with consequential changes on their governmental understanding of the relations between economic activity and other aspects of the life of a national community' (p.79).

Innovations in information and communication technology (ICT) are also associated with globalisation since they operate in reciprocally deterministic ways (Aggarwal, 1999). ICT reinforces the effects of globalisation while at the same time globalisation encourages the dissemination of innovations in ICT. For example, globalisation is enhanced by the presence of trans-national organisations which rely on ICT to aid the coordination and exchange of information required to engaged in geographical businesses. The exchange of ideas and information within trans-national in turn reinforces the international spread of ICT innovations (Aggrawal, 1999).

GLOBALISATION, ICT AND WORK ARRANGEMENTS

At the organisation level, globalisation and ICT have contributed to an environment of rapid innovation and change which, as both academics and business leaders have noted, has increased the scope and scale of competition being confronted (Bartlett and Ghoshal, 2000; Daft, 2000; Frenkel and Peetz, 1998). Global markets increase competition by extending the number and variety of firms that are seeking to service customers and exposes firms to pressure in underlying costs of production. ICT innovations such as the Internet have also increased the need for organisations to provide substantial information to customers which gives customers more information to make judgements about service and product quality that in turn raises their expectations. Rising customer's demands provide incentives to utilise technologies to better service customer needs (Alkadi et al, 2003). Thus, technological innovations and globalising markets are combining to produce a dynamic cycle of increasing the competitive forces operating within business environments.

These competitive pressures on organisations have influenced the development of work arrangements that seek to control the costs associated with labour. In particular many researchers have noted the increased use of work arrangements that seek to match employee numbers to fluctuations in demand for products and services (Grenier, Giles and Belanger, 1997; Kallenberg, 2001; Capelli and Neumark, 2004). Work arrangements such as part-time work, casual and temporary work and the use of contracts have been characteristic of work place changes since the 1980s (Hogler, 1996; de Ruyer and Burgess, 2000; Rasmussen, Lind and Visser, 2004; Osterman, 1994).

Additionally, the Internet supports the utilisation of non-permanent work arrangements because it increases the utility and attractiveness of contingent and peripheral work arrangements through its impact on the costs of administration and monitoring of contract workers (Klaff, 2003; Nesbit, 2002). Contracts for freelance and temporary work are often poorly specified and monitored, resulting in higher costs and low productivity of these workers (Klaff, 2003). Web-based applications help to overcome these problems by integrating the administration of contract work in centralised databases that aid in coordination of contractors, as well as helping to oversee and monitor contractor performance and contract arrangements. Thus the Internet in conjunction with other ICT's enables the move towards greater use of peripheral employment arrangements underlying numeric flexibility needs.