Skip to Main Content
 

Global Search Box

 
 
 

ETD Abstract Container

Abstract Header

EMPOWERING THE 99%...ONE ESOP AT A TIME! A MIXED METHODS NATIONAL STUDY OF ACQUISITIONS BY EMPLOYEE OWNED COMPANIES (ESOPs)

Cromlish, Suzanne McLeod
http://rave.ohiolink.edu/etdc/view?acc_num=case1497011950499674

Abstract Details

2017, Doctor of Philosophy, Case Western Reserve University, Management.
This research project focuses on how Employee Owned Companies, more commonly known as ESOPs, can accomplish both productive and successful acquisitions. A productive and successful acquisition is defined as one that fulfills or exceeds the acquiring company’s expectations. Most successful ESOPs generally implement various types of progressive management strategies including open book management and open door communication. These practices propel active employee engagement and participation and have been demonstrated to enhance productivity and profitability because the employees are both personally and financially empowered to improve organizational performance. Somewhat of a mystery is the question of why there are not more ESOP participants. If their numbers are to increase, it can only occur through two methods: 1) employees purchase the company from an owner and 2) other non-employee owned (Non-ESOP) target companies are acquired by an existing acquiring ESOP company. Most previous studies focus on the first option as well as on specific case studies involving ESOP acquisitions. This study focuses on the second option by examining ESOP organizations in general in diverse industries located throughout the U.S. and researching how these organizations can accomplish productive and successful acquisitions and what, if any, organizational behavior patterns may propel this process. The first study utilizes a qualitative approach by interviewing ESOP executives from both the acquiring and target companies, who have experienced both successful and unsuccessful acquisitions. The second study utilizes academically validated and self-designed scales for a quantitative survey also administered to ESOP executives with acquisition experience. The third study involves another qualitative approach by interviewing consultants with both ESOP and Non-ESOP acquisition experience to obtain a third-party viewpoint. The distinctive findings from all three studies of this project reveal ESOP acquisitions to be highly successful in that they either fulfilled or exceeded the buyer’s expectations. These are significant findings because it is widely known that Non-ESOP acquisitions are generally not as successful. In addition, ESOP executives implement management strategies integrating organizational behaviors of ethical values, shared visions, long-term orientations, altruistic behaviors, strategic planning, which became causal factors for the occurrence of organizational empowerment. The ESOP executives also implemented extraordinary efforts during the cultural integration process. The altruistic behavior pattern woven throughout all three studies demonstrates that ESOP executives remain significantly focused on the welfare of their employees, both personally and financially, and the sustainability of their organizations as opposed to perpetuating a self-interest mindset. The findings also reveal that these organizational behaviors definitely contribute to both productive and successful ESOP organizational acquisitions.
Simon Peck, Ph.D. (Advisor)
254 p.
Management; Organizational Behavior
ESOP acquisitions; organizational behaviors; shared vision; long-term orientation; strategic planning; ethical values; altruistic behavior; organizational empowerment; successful acquisitions; servant and transformational leadership; collective action

Recommended Citations

Citations

  • Cromlish, S. M. (2017). EMPOWERING THE 99%...ONE ESOP AT A TIME! A MIXED METHODS NATIONAL STUDY OF ACQUISITIONS BY EMPLOYEE OWNED COMPANIES (ESOPs) [Doctoral dissertation, Case Western Reserve University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=case1497011950499674

    APA Style (7th edition)

  • Cromlish, Suzanne. EMPOWERING THE 99%...ONE ESOP AT A TIME! A MIXED METHODS NATIONAL STUDY OF ACQUISITIONS BY EMPLOYEE OWNED COMPANIES (ESOPs) . 2017. Case Western Reserve University, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=case1497011950499674.

    MLA Style (8th edition)

  • Cromlish, Suzanne. "EMPOWERING THE 99%...ONE ESOP AT A TIME! A MIXED METHODS NATIONAL STUDY OF ACQUISITIONS BY EMPLOYEE OWNED COMPANIES (ESOPs) ." Doctoral dissertation, Case Western Reserve University, 2017. http://rave.ohiolink.edu/etdc/view?acc_num=case1497011950499674

    Chicago Manual of Style (17th edition)

case1497011950499674
538
© 2017, all rights reserved.
This open access ETD is published by Case Western Reserve University School of Graduate Studies and OhioLINK.