Business Systems Theory and Employment Relations

This chapter discusses the contribution of the business systems framework to our understanding of employment relations across different countries. It draws out important distinctions between the business systems framework and the related varieties of capitalism paradigm. Individual business systems as well as the employment relations that are associated with them are discussed in detail. These discussions are buttressed by references and examinations of relevant empirical evidence. This chapter highlights the importance, within the business systems framework, of linking firms’ strategic priorities, the organizational capabilities they (seek) to develop, the types of employment relations policies that they adopt, and their specific institutional context in analyses. Consequently, the ways in which the internationalization of product, capital, and some labour markets affect any particular firm’s institutional setting are likely to become increasingly important within such analyses.