A model is developed that explicates one process through which employee ownership operates, leading to a set of social-psychological and behavioral effects. Where the formal ownership system is operationalized such that it leads to psychological ownership, a bonding or integration of the employee-owner with the organization occurs. It is through these processes that employee ownership exercises an influence upon group and individual outcomes. A set of antecedent and moderating variables to the operation of the formal ownership system is identified.
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