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Type :thesis
Subject :H Social Sciences (General)
Main Author :Javed, Tariq
Title :Employee ownership and performance of state-owned entities of Pakistan: a moderated mediation analysis of psychology ownership, loyalty, motivation and satisfaction.
Place of Production :Tanjong Malim
Publisher :Fakulti Pengurusan dan Ekonomi
Year of Publication :2021
Corporate Name :Universiti Pendidikan Sultan Idris
PDF Guest :Click to view PDF file

Abstract : Universiti Pendidikan Sultan Idris
This  study  aimed  to  analyze  the  impact  of  employee  ownership  on  the  organizational  performance  of  state-owned  firms  with  the  mediation  of  employee  loyalty,  motivation and  satisfaction, and psychological ownership as a moderator in Pakistan. Agency theory is used as a  theoretical underpinning to operationalize the research framework. This study employed   quantitative  research  design.  The  data  was  collected  through  primary  and secondary data  collection tools. For primary data, a survey was conducted on a sample of 283 employees of the  state-owned firms under the scheme of employee ownership. The secondary data was collected for  financial performance, productivity, and financial cost. The findings showed a significant,  positive impact of employee ownership on net profit margin  (β=1.3198), return on assets   (β=1.167),  and productivity (β=0.0087), while the negative impact on financial cost (β=-0.0654) as  predicted. Mixed findings are shown for moderated-mediation   analysis   for   each   mediating    variables   (p=0.0236,   p=0.1268, p=0.0427) and moderation (p=0.0247, p=0.1183, p=0.0448).  Consequently, the impact of employee ownership on public limited companies is significant as  compared to private limited companies. Based on the findings, it can be concluded that employee  ownership impacts  the  organizational  performance  of  the  state-owned  companies  in  Pakistan.   The findings  of  this  study  have  several  implications  for  companies  and  policymakers.   The reshaped   equity   structure   of   state-owned   companies   will   contribute   to    national development  through  investment  in  human  capital  (employees).  Results  also   indicated that granting ownership rights to employees and involving them in the decision-making  process will improve the performance of state-owned entities. The state-players need to design   their  policy  as  per  companies’  objectives  and  design  to  improve  organizational  performance.  This  study  also  provided  recommendations  to  improve  the  employee ownership   scheme  in  Pakistan.  The  shares  provided  to  the  employees  must  have transferability power  and buyback options. The newly recruited and existing employees can be motivated through maximum benefits on the dividends.  

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