Do Innovative Workplace Practices Foster Mutual Gains?Evidence From Croatia

Croatian manufacturing firm exhibits large variation in participation in innovative work practices(IWPs) notably online teams, offline teams, employee ownership, and incentive pay. Amongst IWPs,probit estimates reveal that membership in offline teams most often yields favorable outcomes forfirms, notably enhanced provision of discretionary effort by employees and more likelihood of peermonitoring, as well as improved worker outcomes, including enhanced job satisfaction and higheremployee involvement. Other IWPs usually are associated with similar favorable outcomes for firmsand workers. Participation in sets of IWPs, that include offline teams and financial incentives, is foundto yield benefits to both employees and firms. Our findings provide support for the proposition thatIWPs will produce mutual gains and also help to identify key channels through which different IWPswork. Women also perceive that they are less empowered and report less willingness to engage in peermonitoring....