Does Trust-Based Working Time Work?


I empirically investigate the impact of trust-based working time on firm performance contingent on four main components of the management control system. Trust-based working time describes a management practice that involves high worker autonomy in deciding when and where to work, which can be seen as a shift from input to output management control. From a theoretical point of view, it is unclear whether the use of trust-based working time increases or decreases firm performance, i.e. whether less input control leads to higher or lower effort induced by higher motivation or shirking. Using data on German manufacturing sites, I find evidence for the impact of trust-based working time on firm performance and shows complementarities and substitutes related to output-based management control.

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Felix Fritsch
Felix Fritsch
Assistant Professor in Accounting & Taxation

I am an Assistant Professor at the University of Mannheim, Business School specializing in data science and empirical accounting research.