Employee versus conventionally-owned and controlled firms: An experimental analysis

Managerial and Decision Economics

Volumn 19, Issue 4-5, 1998, Pages 311-326

  Frohlich, Norman ^a   Godard, John ^a   Oppenheimer, Joe A ^b   Starke, Frederick A ^a  

^a UNIVERSITY OF MANITOBA   (Canada)

^b UNIVERSITY OF MARYLAND   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0006203195     PISSN: 01436570     EISSN: 10991468     Source Type: Journal    
DOI: 10.1002/(SICI)1099-1468(199806/08)19:4/5<311::AID-MDE893>3.0.CO;2-I     Document Type: Article

References (62)

1. A. A. Alchian and H. Demetz (1972). Production, information costs, and economic organization. American Economic Review, 62, 777–795.
2. H. Aldrich and R. Stern (1983). Resource mobilization and the creation of U. S. producers. Economic and Industrial Democracy, 4, 371–406.
3. E. Applebaum and R. Batt (1994). The New American Workplace, Ithaca: ILR Press.
4. W. Bartlett, J. Cable, S. Estrin, D. Jones and S. Smith (1992). Labor managed cooperatives and private firms in north central Italy: An empirical comparison. Industrial and Labour Relations Review, 46, 103–118.
5. R. Bendix (1956). Work and Authority in Industry, New York: Wiley.
6. A. Ben-Ner and D. Jones (1995). Employee participation, ownership, and productivity: a theoretical framework. Industrial Relations, 34, 532–554.
7. S. Bowles (1985). The production process in a competitive economy. American Economic Review, 75, 16–36.
8. S. Bowles and H. Gintis (1987). Democracy and Capitalism, New York: Basic Books.
9. S. Bowles and H. Gintis (1993). Agency theory and the democratic firm. In Markets and Democracy (edited by S. Bowles, H. Gintis and B. Gustafsson), Cambridge: Cambridge University Press.
10. K. Bradley, S. Estrin and S. Taylor (1990). Employee ownership and company performance. Industrial Relations, 29, 385–402.
11. K. Bradley and A. Gelb (1981). Motivation and control in the mondragon experiment. British Journal of Industrial Relations, 19, 211–231.
12. C. Cooper, B. Dyck and N. Frohlich (1992). Improving the effectiveness of gainsharing: The role of fairness and participation. Administratie Science Quarterly, 37, 471–490.
13. M. Conte and J. Svejnar (1990). The effects of worker participation in management, profits, and ownership of assets on enterprise performance. In New Developments in the Labor Market (edited by K. Abraham and R. McKersie), Cambridge: Cambridge University Press.
14. M. Conte and A. S. Tannenbaum (1978). Employee owned companies: Is the difference measurable? Monthly Labor Review, 101, 23–28.
15. J. L. Cotton (1993). Employee Involvement, Newbury Park, CA: Sage Publications.
16. R. Dahrendorf (1957). Class and Class Conflict in an Industrial Society, Standord: Stanford University Press.
17. C. Doucouliagos (1990). Why capitalist firms outnumber labor-managed ones. Review of Radical Political Economy, 22, 44–67.
18. C. Doucouliagos (1995). Worker participation and productivity in labor-managed and participatory capitalist firms: a meta-analysis. Industrial and Labor Relations Review, 49, 58–77.
19. J. Elster (1989). From here to there. If employee owner-ship is so desirable, Why are there so few coops? Social Philosopy and Policy, 6, 93–111.
20. S. Estrin and D. Jones (1992). The viability of employee-owned firms: Evidence from France. Industrial and Labor Relations Review, 45, 323–338.
21. A. M. Fanning and T. McCarthy (1986). A survey of Economic hypotheses concerning the non-viability of labour directed firms in capitalist economies. In Labour Owned Firms and Worker’s Cooperaties (edited by S. Jansson and A. Hellmark), Aldershot, UK: Gower Publishing Ltd.
22. J. L. French (1987). Employee perspectives on stock ownership. Academy of Management Review, 12, 427–435.
23. N. Frohlich and J. A. Oppenheimer (1990). Choosing justice in experimental democracies with production. American Political Science Review, 84, 461–477.
24. N. Frohlich and J. A. Oppenheimer (1992). Choosing Justice: An Experimental Approach to Ethical Theory, California University Press.
25. J. Godard (1992). Strikes as collective voice: A behavioral analysis of strike activity. Industrial and Labor Relations Review, 46, 161–175.
26. J. Godard (1993). The political economy of control: An organizational theory of structural inequality. Work and Occupations, 20, 337–367.
27. C. S. Granrose, E. Applebaum, and V. Singh (1986). Saving Jobs Through Worker Buyouts: Economic and Qualitative Outcomes for Worker Owned, QWL, and non-QWL Supermarkets, Proceedings of the Thirty-Eighth Annual Meetings of the IRRA, Madison, WI: IRRA.
28. E. S. Greenberg (1984). Producer cooperatives and democratic theory: The case of the plywood firms. In Producer Cooperaties in America (edited by R. Jackall and H. Levin), Berkeley: University of California Press, pp. 171–214.
29. C. Gunn (1992). Plywood cooperatives in the U. S.: An endangered species. Economic and Industrial Democracy, 13, 525–534.
30. T. Hammer and R. Stern (1980). Employee ownership: Implications for the organizational distribution of power. Academy of Management Journal, 23, 78–100.
31. T. Hammer and R. Stern (1986). A yo yo model of union-management cooperation. Industrial and Labor Relations Review, 39, 337–349.
32. H. B. Hansmann (1990a). The viability of worker ownership: An economic perspective on the political structure of the firm. In The Firm as a Nexus of Treaties (edited by M. Aoki, B. Gustafsson and O. E. Williamson), London: Sage Publications.
33. H. B. Hansmann (1990b). When does employee ownership work? ESOPS, law firms, codetermination, and economic democracy. Working Paper No. 107, Yale Law School Program in Law and Organization, Centre for Studies in Law, Economics, and Public Policy.
34. M. C. Jenson and W. H. Meckling (1979). Rights and production functions: An application to labor-managed firms and codetermination. Journal of Business, 52, 469–506.
35. D. C. Jones and J. Plishkin (1991). The effects of worker participation, employee ownership, and profit sharing in economic performance: A partial review. In International Handbook of Participation in Organizations (edited by R. Russell and V. Rus), Oxford: Oxford University Press, 2, 43–63.
36. K. Klein (1987). Employee stock ownership and employee attitudes: A test of three models. Journal of Applied Psychology, 66, 319–332.
37. D. Kruse (1993). Profit Sharing: Does it Make a Difference?, Kalamazoo, MI: W. E. Upjohn Institute for Employment Research.
38. E. E. Lawler (1971). Pay and Organizational Effectiveness, New York: McGraw Hill.
39. E. P. Lazear (1986). Salaries and piece rates. Journal of Business, 59, 405–431.
40. G. Lem (1994). Algoma chief shares pain, gives up $400,000 bonus. The Globe and Mail, May 4, B1–B2.
41. R. Long (1978a). The effects of employee ownership on organizational identification, employee job attitudes, and organizational performance. Human Relations, 31, 29–48.
42. R. Long (1978b). The relative effects of share ownership versus control on job attitudes in an employee owned company. Human Relations, 31, 753–763.
43. R. Long (1989). Employee ownership and organizational performance: Exploring the linkages. Paper presented at the 1989 ASAC Meetings, Montreal, Quebec.
44. H. Mandel (1971). The Formation of the Economic Thought of Karl Marx. New York: Monthly Review Press.
45. J. E. Meade (1986). Alternati e Systems of Business Organization and of Workers’ Remuneration, London: Allen and Unwin.
46. R. Michels (1959). (1911). Political Parties, New York: Dover.
47. D. L. Miller (1989). Market, State, and Community, Oxford: Clarendon Press.
48. G. Miller (1992). Managerial Dilemmas: The Political Economy of Hierarchy, Cambridge.
49. D. Mitchell, D. Lewin and E. E. Lawler (1990). Alternative pay systems, firm performance, and productivity. In Paying for Producti ity (edited by A. S. Blinder), Washington: Brookings Institution.
50. A. M. Moye (1993). Mondragon: Adapting cooperative structures to meet the challenge of a changing environment. Economic and Industrial Democracy, 14, 251–276.
51. K. Noble (1991). Can the workers make a go of it? The Globe and Mail, August 17, B18.
52. P. Osterman (1994). How common is workplace transformation and who adopts it? Industrial and Labor Relations Review, 47, 173–188.
53. R. J. Paul, Y. M. Ebadi and D. A. Dilts (1987). Commitment in employee owned firms: Involvement or entrapment? Quarterly Journal of Business and Economics, 26, 81–99.
54. S. Perlman (1949) [1928]. A Theory of the Labor Moement, New York: Augustus M. Kelley.
55. J. L. Pierce, S. A. Rubenfield and S. Morgan (1991). Employee ownership: A conceptual model of process and effects. Academy of Management Review, 16, 121–144.
56. R. Russell (1988). Forms and extent of employee participation in the contemporary United States. Work and Occupations, 15, 374–395.
57. M. Schuster (1986). Gainsharing: The state of the art. Compensation and Benefits Management, 2, 285–290.
58. E. M. Shepard (1994). Profit sharing and productivity: Further evidence from the chemicals industry. Industrial Relations, 33, 452–466.
59. F. Tannenbaum (1983). Employee owned companies. In Research in Organizational Behavior (edited by L. L. Cummings and B. Staw), Greenwich, CN: JAI Press, 5, 235–265.
60. J. D. Thompson (1967). Organizations in Action, New York: McGraw-Hill.
61. United States General Accounting Office (U. S. GAO) (1986). Employee stock ownership plans: Benefits and costs of ESOP tax incentives for broadening stock ownership. (GAO PEMD-87-8). Washington, D. C.: Government Printing Office.
62. W. F. Whyte and K. Whyte (1988). Making Mondragon, Ithaca: ILR Press.