Employee share ownership and firm performance. The mediation effect of employee turnover
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2020-07-01
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en
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Abstract
This study explored the influence of employee share ownership on firm performance, and particularly the mediating effect of employee turnover. Furthermore, this study seeks to provide new insight into the differences between national institutions and the moderation effect of national institutions on the relationship between employee turnover and firm performance. Kaarsemaker (2006) has reviewed 70 studies about the relationship between employee share ownership and firm performance and found mixed results. These mixed results suggest that there are still unknown (contingent) factors that influence the relationship between employee share ownership and firm performance. This study argues that the direct relationship between employee share ownership and firm performance does not exist, but the relationship between employee share ownership and firm performance is mediated by employee attitudes and behavior. In this study, employee attitudes and behavior are measured via the umbrella concept employee turnover.
The CRANET-2015 dataset is used to analyze the relationships. The dataset consist of 2163 organizations in 35 countries. When analyzing the differences in national institutions and the effects of these institutions on the relationship between employee turnover and firm performance, the dataset decreases to 499 organizations in 8 countries. The findings of this study indicate that employee turnover mediates the relationship between employee share ownership and firm performance. However, this study found that the differences between national institutions do not have an effect on the relationship between employee turnover and firm performance.
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Employee share ownership – firm performance – Employee turnover – National institutions
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Faculteit der Managementwetenschappen