Shared Capitalism: A bigger piece for everyone? Employee financial participation and organizational performance in the European context: The moderating effects of the communication practices and the cultural value hierarchy

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2022-01-13
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en
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The economic system capitalism demands architectural modernizations, according to prominent economists and politicians that want to restore the social contract and to make the economy work for workers again. As a consequence, the concept of employee financial participation (EFP) has become an area of significant academic and practitioner interest. This study investigates the effect of employee financial participation on organizational performance in the European context, including the influence of the organizational communication practices and the cultural value of hierarchy on its effectiveness. Based on agency theory and SHRM literature, the main relationship was hypothesized to be positive. Furthermore, the relationship between employee financial participation and organizational performance was hypothesized to be stronger in cultures with low hierarchical values and high communication practices. In order to realize the research objectives, a mixed-methods study was performed. By using data from the Cranet Network, a quantitative analysis, by means of regression analysis, was conducted with a sample of 2376 private firms in Europe. Additionally, six interviews at six different companies were conducted to gather qualitative data. The results of the analyses support the first hypothesis, meaning that employee financial participation positively influences organizational performance, in particular financial performance. It turned out that the organizational communication practices strengthen the positive relationship. The cultural value of hierarchy did not show significant results. By testing the employee financial participation-performance relationship, and the inclusion of two boundary conditions, this study contributes to the employee financial participation literature within SHRM
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Faculteit der Managementwetenschappen
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