When the farm-gate becomes a revolving door: An institutional approach to high labour turnover

Abstract

By adopting an institutional theory lens, the aim of the article is to better understand the actions and mindset of managers toward high labour turnover in the cut-flower industry in Ethiopia. Our mixed-method approach explores the ways in which managers deal with, and legitimize, high levels of labour turnover. Our results show that they engage in three types of practices – predicting, containing and accommodating – whose objective is to make labour turnover tolerable, rather than reduce it. Interestingly, managers do not legitimize their practices through the use of cost-benefit arguments, as the literature would have suggested, but blame the institutional context. This article highlights the context-dependent aspects of labour turnover and explains how managers may find themselves in a deadlock situation. It informs the debate in human resource management research about managerial practices at the bottom of global value chains.