Employee ownership – pros and cons – a review

PurposeThe purpose of this paper is to give an updated overview of the research on employee ownership. What does the scientific literature reveal about advantages and disadvantages? What can be learned from different models used in Italy, France, Mondragon (Spain), UK and US with many employee-owned firms in contrast to Denmark.Design/methodology/approachA structured review of the literature on employee. The paper identifies different mechanisms leading to effects on productivity, job stability, distribution, investment etc., and reviews the empirical evidence. The main barriers and drivers are identified and different models for employee ownership in Italy, France, Mondragon (Spain), UK and US are reviewed to identify potential models for a country like Denmark with few employee-owned firms.FindingsThe article gives an overview over the theoretical predictions and the main empirical evidence of the effects of employee ownership. The pros are greater employee identification with the firm and increased productivity reinforced by increased participation. Employee-owned firms have more equal distribution of wages and more stable employment, and they have greater mutual control between employees and fewer middle managers. The motivation effects may be smaller for large firms and lack of capital may lead to lower levels of investments and capital per employee.Originality/valueComprehensive and updated literature review on the effects and successful formats of employee ownership to identify models for implementation in countries with few employee-owned firms.

Pengembangan Metode Autentikasi pada Sistem Presensi Berbasis Aplikasi Mobile

Research has been carried out on a mobile-based presence system authentication method using MAC addresses, BSSID and IP addresses for (Wi-Fi) networks. This study aims to develop an authentication method on the attendance system that meets two authentication requirements, namely the suitability of employee identity and location suitability, so that the attendance process becomes easy, effective, fast, and can reduce fraud. The employee's identity can be obtained from the MAC address of the smartphone that has been previously registered, while the employee's location during the attendance process can be confirmed to be in the company environment by checking the BSSID data and IP of the Wi-Fi network connected to the smartphone. The data is then compared with MAC address data from all Wi-Fi networks installed in the company area. RAD is used as a development model because it is simple and fast. Overall, employee identification and site checking as authentication of the developed system went well. Other than that, every function on the system works well. Furthermore, the results of the user experience evaluation using the UEQ questionnaire received an average score above 0.8 on 6 scales. This shows that the system has attractiveness, perspicuity, efficiency, dependability, stimulation and novelty.

The origins of internal communication and employer branding in marketing theories

Internal communications and employer branding are recognized as important tools for achieving an inspirational working environment, which is both an aim and a means of differentiation between organisations. A growing number of studies demonstrate a connection between internal communication and employee identification with the organisation they work for, as well as with their perception of employer’s brand. The aim of this theoretical paper is to identify and elaborate theoretical foundations that contributed to the development of these two concepts. For that purpose, marketing schools of thought, primarily social exchange school of marketing thought and relationship marketing are analysed and related to the concepts of internal communication, and employer branding. The analysis shows that social exchange school theories can be applied to describe values that are exchanged through internal communication and employer brand activities, while relationship marketing principles are used when implementing these activities in order to develop positive employee relationships.

Effects of internal brand knowledge dissemination on the employee

PurposeThis study aims to examine the internal brand knowledge dissemination process in the banking sector and its effects on employees. Specifically, it focuses on the key roles of employee identification with both the organization and with the customer as antecedents of behaviors supportive of the brand, i.e. employee citizenship behaviors and recommendation behaviors.Design/methodology/approachAn empirical study was carried out in a major Spanish bank. Data gathered from a survey of 315 employees were analyzed through structural equation modeling.FindingsThe results showed that employees' perceptions of brand value congruence are key in explaining their identification with both the organization and with the customer. However, the employees' perceptions of the brand's authenticity explained only their recommendations of the bank as a good place to work.Originality/valueThese findings contribute to the advance in the current knowledge of the role of variables such as brand authenticity and employee–customer identification in internal brand management. From a managerial viewpoint, the results provide insights into the importance of employees' perceptions and attitudes when it comes to brand knowledge dissemination.

Does Customer Experience Always Benefit Company? Examining Customers’ Epistemic Motivation and Interaction With Service Contexts

The main purpose of this study is explaining how and when customer experience benefits the company. Built upon social identity theory, we propose that customer experience leads to customer engagement behavior, via two routes: customer-company and customer-employee identification. Furthermore, we advance that customers’ epistemic motivation negatively moderates the mediated effect of customer experience on customer engagement behavior. We ran two studies to validate the measurement of customer experience and to test our hypotheses. For the two studies, we employed a survey method by recruiting consumers of beauty salons in Vietnam. The results demonstrated that EXQ as a measurement for customer experience is applicable to the context of the study and provided empirical support for the hypotheses. Such as, this research found that customer experience positively influences customer engagement behavior as mediated by customer-company and customer-employee identification. Furthermore, this research revealed that customer epistemic motivation negatively moderates the mediated effect of customer experience on customer engagement behavior via customer-employee identification. However, the moderating role of customer epistemic motivation is insignificant for the mediated relationship via customer-company identification. Finally, this research offers theoretical and practical contributions that are elaborated and further discussed.

Promoting customer engagement in service settings through identification

Purpose The purpose of this paper is to empirically test some of the consumer engagement frameworks that have been previously proposed in marketing literature. Design/methodology/approach Data were gathered via surveys distributed to members of a health club in the USA. Results were analyzed using structural equation modeling. Findings We found the effects of satisfaction on intercustomer support – the assistance received from other customers within a service setting – to be fully mediated by customer identification. The strength and direction of effects differed based on the type of identification. They also found an effect of satisfaction on customer patronage frequency. This effect was fully mediated by customer–employee identification. Practical implications The findings illustrate that, in most cases, intercustomer support can be built and enhanced by focusing on customer identification. Both customer–company and customer–customer identification had a positive effect on social/emotional and instrumental support; however, they did not influence a consumer’s patronage frequency. Conversely, customer–employee identification decreased perceptions of instrumental support, but increased perceptions of social/emotional support and patronage frequency. While the findings indicate that identification with a firm’s employees drives a customer’s patronage, firms must decide if the benefits received from increased patronage are worth the decreased instrumental support. Originality/value Past research has demonstrated the benefits of intercustomer support at both the firm and customer level, yet little research has investigated what enhances intercustomer social support in an organization. The research answers this question and illuminates some specific mechanisms that mediate this effect. Additionally, while previous research indicates that intercustomer support drives objective outcomes such as firm performance and loyalty intentions, we instead found these outcomes to be driven by customer–employee identification.

Dimensions of Identification in the Workgroup and Employees’ Contributions to Collaborative Activities

The aim of this research is to find out connections of identifications with the work group (group identification), informal subgroups (micro-group identification), and other members in the work group (interpersonal identification), considering cognitive, affective, and behavioral components, with an employee’s contribution to cooperative activities. The sample includes 302 fellows of 35 workgroups in Russian commercial companies and public organizations. Empirical data were collected with the Questionnaire of Interpersonal Identification, the Questionnaire of Micro-group and Group Identification, and the Collaborative Group Activity Scale from the Leadership, Contribution, and Interpersonal Style Questionnaire. All the tools were assembled into the computer-based assessment program “Group Profile” (GP) to conduct the survey individually on PC. It was found that all three dimensions of group identification and affective measures of interpersonal and micro-group identification predict individual contribution to collaborative activities in groups. Employee involvement in the informal subgroup within the work group mediates relations between identification dimensions at different levels and contribution to collaborative activities. The ties of additional characteristics (gender, age, tenure with the organization) with cooperative activities have been described. The multivariate model of identification makes it possible to extend the research scope and enhance the understanding of causes and effects of employee identification in the group.

Structural empowerment and serving culture as determinants of organizational identification and turnover intention

Purpose This paper aims to provide an alternative explanation for how organizations could increase levels of organizational identification, in turn reducing employee turnover intention. Specifically, the study empirically tests the joint effect of two types of organizational resources – structural empowerment and serving culture (SE*SC) – on employee identification. Moreover, it investigates the mediating effect of organizational identification on the relationship between the joint effect (SE*SC) and turnover intention. Design/methodology/approach The data were collected in 2018 from employees working in a higher education institution located in the USA. Structural equation modeling was used to test the proposed model. Findings Statistical analysis reveals the positive joint effect (SE*SC) on organizational identification and the mediating effect of identification on the relationship between the joint effect (SE*SC) and turnover intention. Originality/value This study contributes to past research by revealing a new important mechanism. Business organizations could increase levels of employee identification and, in turn, reduce turnover by providing empowering resources that allow employees to successfully complete their jobs. Moreover, the study also contributes to practice by providing some recommendations that managers may implement to improve internal effectiveness in their respective organizations.