Employee ownership motivation and individual risk-taking behaviour: A cross-level analysis of Taiwan's privatized enterprises

Privatization has long been a prevailing strategy worldwide for promoting economic liberalization. During privatization of state-owned enterprises employees are often encouraged, as part of policy design, to become equity shareholders through buying priority shares reserved for them with the goal of expediting privatization and building employees' organizational identification. Using risk-taking behaviour as a lens to observe individual-level entrepreneurial orientations after privatization, this study, in a sample of 328 employees in 14 privatized firms in Taiwan, aims to examine the behavioural consequences of two distinct types of motivation behind employee ownership and the contextual influences on such relationships. Because of the hierarchical nature of the individual- and firm-level data, we use the hierarchical linear modelling (HLM) method to test the hypotheses and find that intrinsic motivation ex ante for employee ownership can cultivate innovative behaviour ex post, whereas extrinsic motivation yields the similar effect only in the presence of a climate of self-determination and the absence of environmental hostility.