The use of contractual working time flexibility by Spanish SMEs

Abstract

This paper investigates the use of contractual working flexibility (temporary and part‐time contracts) by Spanish small and medium sized enterprises (SMEs). A framework based on a contingency approach is used to identify variables that influence contractual working flexibility and is used to put forward a number of propositions and hypotheses that are tested using data collected from a survey of 602 Spanish SMEs. One‐way ANOVA analysis results reveal significant relationships between the level of contractual working flexibility and industry, life cycle, level of uncertainty, technological system, age, size and human resources practices. These findings are used to construct profiles of SMEs in relation to use of high and low levels of contractual working flexibility. The results suggest that various contingency factors as well as uncertainty, lead SMEs to develop different usage of contractual working flexibility.