Understanding Financial Participation across Market Economies

Elaine Farndale, J. Ryan Lamare, Maja Vidović and Amar S. Chauhan

International Studies of Management & Organization, 2019, vol. 49, issue 4, 402-421

Abstract: Organizations implement a range of financial participation plans to help create a stronger linkage between corporate and individual goals. Although seemingly an organizational-level choice as to what plans are adopted, we argue that institutional constraints at the market economy level of analysis that directly affect worker-firm relationships play a significant role in this choice. Based on organization-level data from nineteen countries, comparisons of the level of profit-sharing and equity-ownership plan use are explained through varieties of capitalism theorizing. The findings indicate the usefulness of this level of analysis in explaining corporate practice in financial participation.

Date: 2019
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DOI: 10.1080/00208825.2019.1646489

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