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

Yoon, Yeongjoon; Sengupta, Sukanya

doi:10.1002/hrm.21991

Cited by 12 publications

(18 citation statements)

References 88 publications

(221 reference statements)

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“…Freeman et al , 2010; Kim and Ouimet, 2014) to insignificant outcomes (e.g. Kruse, 1992; Sengupta and Yoon, 2018; Yoon and Sengupta, 2019a). This raised doubts about Kleins (1987) “intrinsic” satisfaction model and whether the presence of ownership per se is a sufficient condition in fostering feelings of ownership and the resultant performance effects expected of ESO schemes.…”

Section: Theoretical Background and Hypothesismentioning

confidence: 99%

“…Freeman et al , 2010; Kim and Ouimet, 2014), the magnitude of this effect varies across studies, with some studies reporting no productivity/performance effects (e.g. Kruse, 1992; Sengupta and Yoon, 2018; Yoon and Sengupta, 2019a). The mixed evidence has contributed to the emergence of contingency arguments that acknowledges the role of contextual factors in moderating this relationship (Kaarsemaker and Poutsma, 2006; Kruse et al , 2010; Sengupta, 2008; Yoon and Sengupta, 2019b).…”

Section: Introductionmentioning

confidence: 99%

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The role of business strategy on the adoption and effectiveness of broad-based employee share ownership

Yoon

Sengupta

2021

JOEPP

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PurposeIn this research, the authors try to answer the question of when broad-based employee share ownership (ESO) is more likely to be used and how it can be managed more effectively from the vertical fit perspective in strategic human resource management (HRM).Design/methodology/approachThe study analyzes an unbalanced panel sample of 614 organizations (1,601 organization-year data points) in South Korea, utilizing hierarchical linear modeling (HLM).FindingsThe analysis demonstrates that organizations are more likely to adopt broad-based ESO when they utilize the prospector and analyzer strategies as opposed to the defender strategy. The analysis also reveals that the relationship between broad-based ESO and labor productivity is positive only when organizations utilize the prospector strategy as opposed to other types of strategies (i.e. analyzer and defender strategies).Practical implicationsThe findings first indicate that the decision to adopt a broad-based ESO in organizations should be informed by their business strategy if they want to enhance labor productivity. Specifically, the results demonstrate that only the prospector firms, rather than defenders or analyzers, can reap the productivity benefit of broad-based ESO. Second, since innovation is a major source of productivity for prospector firms, the findings demonstrate that a broad-based ESO can be a vehicle that drives innovation. As a result, firms may want to consider utilizing broad-based ESOs to foster innovation.Originality/valueThe findings emphasize the relevance of the “vertical fit” perspective in examining the broad-based ESO and firm productivity relationship. Most past research utilized the “horizontal fit” framework in refining the relationship between broad-based ESO and productivity. Thus, the study emphasizes the need to utilize the “vertical fit” perspective, and not only the “horizontal fit” perspective, in the broad-based ESO research. Through this, the study meaningfully extends the research on the productivity effect of broad-based ESO by adding an important moderator (i.e. strategy) to the model.

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Section: Theoretical Background and Hypothesismentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The role of business strategy on the adoption and effectiveness of broad-based employee share ownership

Yoon

Sengupta

2021

JOEPP

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“…They found that employee involvement directly enhanced BESO with respect to labor productivity, but these activities substituted for each other when it came to social cohesion and, subsequently, voluntary turnover. Yoon and Sengupta () argue for the consideration of BESO with multiple HR practices rather than just one and found that BESO is further enhanced when there is both high investment in training and early promotion opportunities with regard to labor productivity. Finally, the work of Basterretxea et al () provides a different perspective in that it highlights what occurs when employee ownership in worker cooperatives clash with a variety of HRM policies and practices.…”

mentioning

confidence: 99%

“…In their study entitled “Employee share ownership, training, and early promotion policy as a bundle in enhancing labor productivity: A test of the three‐way interaction effect,” Yoon and Sengupta () test the effect of multiple HR practices (i.e., training and promotions) on the relationship between employee share ownership (ESO) and labor productivity. These authors argue for an HR practice bundle approach, as the productivity enhancing the effects of ESO can better materialize when ESO is complemented by other HR practices.…”

mentioning

confidence: 99%

“…These authors argue for an HR practice bundle approach, as the productivity enhancing the effects of ESO can better materialize when ESO is complemented by other HR practices. Drawing upon contingency and human capital perspectives, Yoon and Sengupta () hypothesize that while ESO can motivate and retain employees, investments in training can ensure that those employees are fully capable of performing at a high level. Moreover, early promotions further complement ESO and training, as these career growth opportunities ensure a progressive match of employee skills with job responsibilities, thereby reinforcing long‐term employment relationships.…”

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Broad‐based employee stock ownership: What makes it effective in the management of human resources?

Mullins

Weltmann

Kruse

et al. 2019

Human Resource Management

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Research linking broad‐based employee stock ownership (BESO) with firm performance continues to receive considerable attention both in and outside the field of management. Despite the evidence being generally positive regarding the BESO–firm performance relationship, there has been a relative dearth of research providing insights into the circumstances surrounding the effectiveness of BESO. With this research gap in mind, we formulated and launched this special issue. This guest editor introduction begins with a look at the research on this topic, followed by a brief discussion of each article accepted for publication. We conclude by highlighting the major themes from the collective contributions of the articles and share insights regarding future research in this growing research domain.

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The Role of Employee Ownership, Financial Participation, and Decision‐Making in Corporate Governance: A Multilevel Review and Research Agenda

Del Sordo,

Zattoni

2024

Corporate Governance

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Research Question/IssueThe allocation of return and control rights to employees has been somewhat overlooked in governance literature, but it has garnered interest from scholars across various fields. Our analysis of five decades of research integrates and juxtaposes theory and evidence from three independent yet intertwined domains: employee ownership, financial participation, and decision‐making. Our work synthesizes an extensive body of past and current findings and introduces a multilevel contingency framework to formulate novel theoretical, methodological, and contextual remedies.Research Findings/InsightsWe conducted a multilevel analysis of 184 articles published in reputable journals. Our results reveal complementary and substitutive relationships between employee financial participation and decision‐making and show that various contextual variables operating at different levels (i.e., individual, company and country) jointly impact employees behaviors and firm outcomes. Our findings help explain the mixed or ambiguous results of previous studies and offer novel theoretical and methodological pathways for future research.Theoretical/Academic ImplicationsOur study invites scholars to further investigate the antecedents and consequences of employee ownership, financial participation and decision‐making. Specifically, we recommend adopting theories and methods that illuminate the complex nature of the employee ownership construct, develop a multilevel understanding of the phenomenon, and analyze the moderating effects of various contextual variables.Practitioner/Policy ImplicationsInsights from our review can assist practitioners and policymakers in designing plans that allocate either one or both of ownership rights to employees, enhancing their understanding of the role and impact of diverse contextual factors operating at various levels.

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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

Cited by 12 publications

References 88 publications

The role of business strategy on the adoption and effectiveness of broad-based employee share ownership

The role of business strategy on the adoption and effectiveness of broad-based employee share ownership

Broad‐based employee stock ownership: What makes it effective in the management of human resources?

The Role of Employee Ownership, Financial Participation, and Decision‐Making in Corporate Governance: A Multilevel Review and Research Agenda

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