Diffusion of labor agreements: Evidence from the UK oil industry

Abstract

There has to date been no in-depth analysis of the way in which industrial relations practices – in particular labor agreements – diffuse vertically through an organization and horizontally through an economy. This is despite the titles of empirical research in this area. This process of diffusion however, is both an important and yet neglected area of theory. The theory of the diffusion of innovations can be applied to the empirical findings here and encompasses several previous studies: it thus enables a more thorough investigation of the way in which changes in industrial relations are promulgated both within and between organizations. This paper presents evidence of such a diffusion of innovation effect in the oil sector of the UK economy.