Determining the success of an employee share ownership scheme: Strategy insights from South Korea on approaching innovation and productivity

Abstract

Purpose

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

Across 614 organizations in South Korea, regarding the operation of the country’s broad-based ESO scheme – known as “Ulisaju” – this is more likely to be offered to employees working on companies with a prospector strategy or an analyzer strategy, rather than a defender strategy. Because prospector firms are most focused on achieving and sustaining innovation. Prospector strategy firms yielded 13% higher productivity from their people. The choice of business strategy influences productivity, since broad-based ESO drives better productivity in prospector firms only.

Originality/value

The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Citation

(2022), "Determining the success of an employee share ownership scheme: Strategy insights from South Korea on approaching innovation and productivity", Human Resource Management International Digest, Vol. 30 No. 5, pp. 12-14. https://doi.org/10.1108/HRMID-05-2022-0070