The Effects of Innovative Capabilities and Institutional Pressure on Multiple Firm Response: A Taiwan Survey of HR Practice for Aging Workforce
Many governments extend the retirement age to cope with the problems of unemployment and fiscal burdens. This study regards new practices for their aging workforce as the way to follow the requirement of government. Based on a sociotechnical perspective, combining with social institution and technological innovation perspectives, this study aims to clarify the elusive relationships among institutional pressure, such as state ownership, innovative capabilities, the degree of adopting aging HR practices for an aging workforce and the timing of adoption. We hypothesize and test three arguments. First, the relationship between state ownership and aging HR practices is affected by the stage of the institutionalization. That is, although the firms with high state ownership are supposedly subject to the policy-complying pressure, they prefer to adopt aging workforce practices in the later stage of the institutionalization because the HR practices may not be consistent with organizational goals in the beginning. Second, organizational flexibility could enhance the relationship between state ownership and aging HR practices in the early stage. Finally, organizational efficiency will increase the relationship between state ownership and aging HR practices in the later stage of the institution. These arguments were empirically supported by a sample of 537 industrial firms in Taiwan. This study contributes to increase the explanatory power of institutional perspective upon the relationships between state ownership and aging HR practices by socio-technical perspective.