Shared Capitalism, Social Capital, and Intra-Organizational Dynamics

Sangjoon Lee
Journal of Participation and Employee Ownership

This paper is to explore employee participation in ownership and control in a modern corporation and its impacts on intra-organizational social capital and workplace dynamics.  Using the National Bureau of Economic Research (NBER) Shared Capitalism Survey, it explores the varieties of organizational governance and tests the effects of shared capitalist programs and policies via multivariate regression analyses.  It presents empirical support for the main working hypothesis that employee participation in ownership and control enhances worker trust for the firm, which in turn promotes commitment to performance and innovation at workplace.  The empirical findings here imply that scaling worker participation can enhance productivity potentials of a firm.  Above all, this paper takes a look at shared capitalism and workplace participation in decision-making through the lens of social capital.