The co-evolution of technology and employment relations: Institutions, innovation and change

This paper presents a theoretical model for understanding the co-evolution process between technolo-gies and employment relations institutions. We have named this framework the Evolutionary Industrial Relations System (e-IRS) after both the original concept of an Industrial Relations System (IRS) by Dun-lop and the evolutionary theory. The basic ideas of Dunlop's IRS are maintained: actors interacting in contexts, mediated by a shared ideology, to set up a web of rules that regulate employment relations. However, to surpass some of its main limitations, this model is substantially modified according to the evolutionary contributions about: firm behaviour, innovation and institutions. Innovation is seen as the main drive of change in employment relations institutions. The outcome of this process is unique for each country, because any change in employment regulation has to be negotiated between its respective firms, workers and government. (c) 2021 Elsevier B.V. All rights reserved.