Employee share ownership and organisational performance: a tentative opening of the black box

Whitfield, Keith; Pendleton, Andrew; Sengupta, Sukanya; Huxley, Katy

doi:10.1108/pr-09-2016-0243

Cited by 13 publications

(32 citation statements)

References 51 publications

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“…The studies exploring the synergistic effects of ESO and training on productivity, however, are limited (Whitfield et al, ). Most of the studies focus on the correlation between ESO presence and investment in training (Guery & Pendleton, ; Pendleton & Robinson, ; A. M. Robinson & Zhang, ).…”

Section: Theoretical Background and Hypothesismentioning

confidence: 99%

“…The only study, to the best of our knowledge, that has explored the synergistic effects of ESO and training on productivity (or performance) only offers partial support for the positive outcomes (Whitfield et al, ). Drawing on a nationally representative dataset of British firms from the 2004 and 2011 Workplace Employee Relations Survey (WERS), the study found that the positive interaction effects of ESO and training were observed for financial performance but not for labor productivity.…”

Section: Theoretical Background and Hypothesismentioning

confidence: 99%

“…By providing ESOs to its employees, an organization indicates that it will not monopolize the gains from training, and by holding the ESOs, employees indicate their intention to remain with the firm. This, in turn, mitigates the organization's risk of investing in training (Whitfield et al, ).…”

Section: Introductionmentioning

confidence: 99%

“…The argument that the productivity-enhancing effect of ESO can be strengthened under the high training condition has garnered much interest recently (Whitfield, Pendleton, Sengupta, & Huxley, 2017). The theoretical rationale is based on the "lock-in" capabilities of ESO and reciprocal signals about the commitment between organizations and employees through investment in training.…”

mentioning

confidence: 99%

“…Robinson & Wilson, 2006). In fact, there is a strong theoretical rationale for expecting positive synergistic complementarities among ESO, investment in training (Guery & Pendleton, 2016;Pendleton & Robinson, 2011;Whitfield et al, 2017), and early promotion policy (Rousseau & Shperling, 2003). However, previous studies have only focused on the two-way complementarities of ESO and training.…”

mentioning

confidence: 99%

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Employee share ownership, training, and early promotion policy as a bundle in enhancing labor productivity: A test of the three‐way interaction effect

Yoon

Sengupta

2019

Human Resource Management

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The three‐way interaction effect of (broad‐based) employee share ownership (ESO), training, and early promotion policy on labor productivity was examined in a longitudinal sample of 614 organizations (1,605 organization‐year data points) in Korea. The ESO–productivity relationship was positive only when the investment in training was high and the opportunity for early promotion was present. However, we found no evidence for the two‐way interaction effects of ESO and training and ESO and early promotion policy on labor productivity. The results are in alignment with the emergent view that the productivity benefits of ESO can be better realized when ESO coexists with a bundle of complementary human resource management (HRM) practices. Thus, this study meaningfully extends the contingency perspective and related studies in the ESO literature, which tend to examine the productivity effect of ESO in isolation or in conjunction with a single HRM practice.

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Section: Theoretical Background and Hypothesismentioning

confidence: 99%

Section: Theoretical Background and Hypothesismentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

mentioning

confidence: 99%

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Employee share ownership, training, and early promotion policy as a bundle in enhancing labor productivity: A test of the three‐way interaction effect

Yoon

Sengupta

2019

Human Resource Management

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Employee‐Owned Firms from a Stakeholder Perspective

Guadaño

López-Millán

2018

J of Intl Development

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This study focuses on the role of employee-owned firms (EOFs) in value creation from a stakeholder perspective. EOFs have been defined as Social Economy enterprises in Spain following guiding principles that in our opinion should empower stakeholder governance. Therefore, the impact of employee share ownership on value creation for shareholders and stakeholders has been measured on the basis of a sample of 1006 enterprises. The results reveal that EOFs have a positive and significant influence on the distribution of value in favour of the employees but not the other stakeholders. This finding, which allows us to partially accept one of the proposed hypotheses, is consistent with previous evidence that EOFs set their objectives to maximize the value obtained by the participating employees through their financial participation in the business, and not, therefore, to maximize profits.

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Organizational citizenship behavior: understanding interaction effects of psychological ownership and agency systems

et al. 2022

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Organizational citizenship behavior is a highly sought-after outcome. We integrate insight from the psychological ownership perspective and agency theory to examine how the juxtaposition of informal psychological mechanisms (i.e., ownership feelings toward an organization) and formal and informal governance mechanisms (i.e., employee share ownership, agency monitoring, and peer monitoring) influences employees' organizational citizenship behaviors. Our empirical results show that psychological ownership has a positive effect on organizational citizenship behavior. Contrary to the common belief that informal and formal mechanisms complement each other, we find that the positive influence of psychological ownership on organizational citizenship behavior is more pronounced when employee share ownership and agency monitoring is low compared to high. Implications for theory and future research are discussed.

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Employee share ownership and organisational performance: a tentative opening of the black box

Cited by 13 publications

References 51 publications

Employee share ownership, training, and early promotion policy as a bundle in enhancing labor productivity: A test of the three‐way interaction effect

Employee share ownership, training, and early promotion policy as a bundle in enhancing labor productivity: A test of the three‐way interaction effect

Employee‐Owned Firms from a Stakeholder Perspective

Organizational citizenship behavior: understanding interaction effects of psychological ownership and agency systems

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