Free market capitalism is one of the great achievements of humankind, bringing prosperity and economic freedom to billions of people and contributing to a flowering of individual freedom and possibility that would have been unimaginable to our ancestors. Today, however, increasing global crises are posing the greatest threat this economic system has faced. Growing income … Read More
Wages don’t cover the bills. Wealth inequality is growing. Social trust is eroding. There are endless debates about what to do, but one key factor is inexplicably left out: who owns the companies that drive the economy? Ownership matters. Ownership by a few means benefits for a few. But if you spread ownership around, you … Read More
Huawei Technologies, the Chinese telecommunication technology giant that was put into the U.S. government’s Entity List from May 2019, has become a contested issue in the emerging U.S.-China technology rivalry. In particular, the U.S. government and Western academics have viewed Huawei’s unique employee ownership as an opaque structure subject to the influence of the Chinese … Read More
Pallak Seth, Group CEO of PDS Multinational Fashions, is contemplating options to bring better collaboration across his global apparel supply chain platform. PDS, a group of 50-plus subsidiary companies, each led by its own CEO and with different apparel industry specialties, has grown rapidly over the past decade, yet the industry is increasingly competitive and … Read More
Platform cooperatives make possible a more democratic digital economy. They offer an alternative to extractive “platform capitalism,” one based on cooperative principles such as democratic ownership and governance.
Led by CEO Zhang Ruimin, Haier in 30 years has gone from a money-losing, rigid hierarchy, state-owned, local firm to a profitable, flexible structure, collectively-owned, multinational enterprise. This transformation has been done in well-defined steps. In 2012, it was moving toward operating as a platform for microenterprises. The platform was to be open to both … Read More
In this paper, we first examine whether Huawei has an advantage over ZTE following the strategic restructurings in 2011, and then retest the hypothesis on the positive effect of an ESOP on Huawei’s competitive position…
Profit-sharing plans are one way to address the global issues of income inequality and uneven wealth distribution while increasing employee engagement. One company, the Chinese telecom Huawei, has a successful employee stock ownership plan (ESOP) that demonstrates such incentives can be good for both employees and the business.
This case study describes Huawei, a Chinese telecommunications equipment company, which heavily utilizes ESOP ownership, and applies Huawei’s results to describe ESOPs as a powerful tool for achieving corporate efficiency and growth.
Roy Weber met Cheng Wang, a business consultant and Chinese entrepreneur, at Cheng’s hotel bar in Silicon Valley. Although Roy was slightly familiar with Chinese business practices, he welcomed more advice from a Chinese national. Could Roy transplant Silicon Valley’s model of employee ownership to China, and what would this process entail for a technology startup?