News from Cass Business School

Employee ownership model 'shows greater resilience'

Professor Joe Lampel and Dr Ajay Bhalla explain research into employee-owned companies

Wednesday, 21 April, 2010

Companies owned by their employees are more resilient than conventionally structured companies, outperforming the market during the downturn and demonstrating a lower risk of business failure suggest Professor Joe Lampel and Dr Ajay Bhalla in this week's Cass Talks interview, based on research commissioned by the John Lewis Partnership.

The report - Model Growth: Do employee-owned businesses deliver sustainable performance? - is based on an in-depth survey of senior executives and analysis of the financial data of over 250 companies.

The research finds that the employee ownership model offers particular advantages to small and medium-sized businesses and in knowledge and skill-intensive sectors, where employee-owned companies significantly outperform competitors. Employee-owned firms also create new jobs more quickly and add more value to output and human capital than conventionally structured businesses, whilst demonstrating the same levels of profitability.

The interviews are an opportunity to hear Cass faculty give their perspective on current business and finance news stories, global issues affecting the business world and new research coming out of the School.

Listen, watch and download Professor Lampel and Dr Bhalla and see other Cass academics share their opinions at www.cass.city.ac.uk/casstalks

Permanent link to this story: https://www.cass.city.ac.uk/news-and-events/news/2010/april2/employee-ownership-model-shows-greater-resilience
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