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


Croucher, R., Rizov, M. and Goolaup, R. 2014. Management communication, unionization, FDI and company performance in a developing country. Evidence-based HRM. 2 (2), pp. 164-175.
TitleManagement communication, unionization, FDI and company performance in a developing country
AuthorsCroucher, R., Rizov, M. and Goolaup, R.

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

KeywordsWork 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
Research GroupEmployment Relations group
PublisherEmerald Group Publishing Limited
JournalEvidence-based HRM
Publication dates
PrintOct 2014
Publication process dates
Deposited21 Nov 2014
Output statusPublished
Accepted author manuscript
Copyright Statement

This article is (c) Emerald Group Publishing and permission has been granted for this version to appear here in the Middlesex University Research Repository. Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Group Publishing Limited.

Digital Object Identifier (DOI)
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