To read the full version of this content please select one of the options below:

The development of employee ownership in China

Niels Mygind (Department of International Economics and Management, Copenhagen Business School, Frederiksberg, Denmark)
Benjamin Faigen (Copenhagen Business School, Frederiksberg, Denmark)

International Journal of Emerging Markets

ISSN: 1746-8809

Article publication date: 17 July 2017

Abstract

Purpose

Little systematic work has been completed on the incidence of employee ownership in a Chinese context. Similar to the situation in Eastern Europe, this type of ownership was quite widespread in China, particularly during the 1990s. Based on the existing literature and available statistical data, the purpose of this paper is to identify drivers of, and barriers to, the development of employee ownership in China.

Design/methodology/approach

The scattered evidence from the literature and official statistical sources are collected and structured in a systematic analysis where the drivers and barriers for employee ownership in the transition process from plan to market are identified at three levels: society, the company and the individual.

Findings

Employee ownership developed as a transitory stage between state and private ownership; employees acquired ownership stakes as part of the privatisation of small- and medium-sized state-owned enterprises as well as collectively owned enterprises. However, in most cases the dynamics of ownership resulted in dominant ownership by managers. This trend became more noticeable at later stages of the privatisation process.

Research limitations/implications

The paper shows how policies and institutional settings at the society level are determining for the development of employee ownership.

Originality/value

The contribution of the paper is to give a general and systematic analysis of the development of employee ownership in China both based on a comprehensive literature review and by utilising existing statistical sources.

Keywords

Citation

Mygind, N. and Faigen, B. (2017), "The development of employee ownership in China", International Journal of Emerging Markets, Vol. 12 No. 3, pp. 464-487. https://doi.org/10.1108/IJoEM-12-2015-0261

Publisher

:

Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited