The impact of employee ownership as a resilience strategy on firm performance before and during crisis: A literature review

This paper reviews the impact of employee ownership as a resilience strategy on firm performance both before and during periods of crisis. Employee ownership has garnered substantial attention as a potential strategy for enhancing organizational resilience, with implications for stability and performance during economic downturns and other disruptive events. This review systematically examines existing research, focusing on how employee ownership schemes contribute to business performance by improving financial stability, employee engagement, and overall organizational resilience. It covers studies that evaluate the impact of employee ownership on firm performance in pre-crisis conditions versus during crises. Key findings indicate that while employee ownership may exhibit varied effects in stable environments, it generally contributes to improved firm performance and stability during crises. The article, therefore, contributes to the broader discourse on organizational resilience strategies, providing insights for policymakers, practitioners, and academics interested in improving firm stability during times of crisis through employee ownership models.