Employee Participation in the Strategic Process: A Benefit or a Burden?

Thumbnail Image
Journal Title
Journal ISSN
Volume Title
This research focuses on the extent to which and how employee participation is related to the phases of the strategic process. Literature on the relation between these concepts has been found to be scarce. In order to answer the research question, a mixed-method study was carried out. The Cranet database of 2015 provided usable data to conduct a quantitative analysis (linear regression). Moreover, five interviews were conducted for qualitative results. Firstly, based on theory, this thesis motivates that the strategic process is often separated in three phases: strategy formulation, strategy implementation and a third outcome-phase, namely performance. In addition, it has been found that four forms of employee participation can be distinguished: communication in briefings, direct participation, indirect participation and financial participation. The conducted research also has led to several empirical conclusions. First of all, this research confirms that having a developed strategy is positively related to organizational performance. In addition, financial- and direct employee participation practices turn out to be positively related to organizational performance. A very important explanation for the abovementioned relation can be found in the ownership-effect. Lastly, this research therefore shows that direct participation and communication in briefings positively relate to the strategic process.
Faculteit der Managementwetenschappen