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This is an electronic version of the accepted paper in the British Journal of Industrial Relations[EN]Whether ‘employee ownership’ takes the form of worker cooperatives, co-ownership or simply employee share ownership plans, there are normally high expectations that a range of positive outcomes will result. Yet many empirically-based studies tend to find a much more complex picture. An influential segment of that empirical literature has posited the need for a number of mutually-reinforcing workforce management components to be in place alongside co-ownership. Drawing on detailed case research in two large and successful co-owned retailers in Spain and Britain this paper examines the role of these wider elements supporting employee ownership. We find that employee ownership can be linked to higher productivity and lower employee turnover, while at the same time being linked to higher absenteeism and mixed effects on attitudes. Expectations held by managers and employees are higher; these expectations are not always fully met. The role of managers was also found to be crucial.This article drew on two research projects: “Dirección de Innovación y Personas”,
funded by the University of the Basque Country UPV/EHU (GIU-15/08); and “A Better
Way of Doing Business?”, funded by the Economic & Social Research Council,
(ES/K000748/1)
The generous help of senior managers at Eroski and JLP is also acknowledged
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