Lewis Ownership Theory

Research Question- Does Ownership Influence Organizational Loyalty? A case study of John Lewis.

CHAPTER ONE : INTRODUCTION

This thesis explores an analytical and conceptual framework on the possibility of ownership influence on organizational loyalty as it applies to the modus operandi of John Lewis’ Partnership. There are divergent views about the influence of ownership on organizational loyalty. Research suggests that ownership may influence organizational loyalty, but it is not completely clear how. Thus prompting various researches and scientific experimentation on the subject matter. Scholars reviewing the performance differences between companies that practice ownership framework and other forms,

In recent past, strategic management has pivoted on agency theory, firm strategy- performance relationships, theory of property rights, theory of finance, as well as concentration of ownership to develop a theory of a firm’s ownership structure ( e.g., Lane, Lubatkin and Cannella (1998)). These researchers are on the opinion that, when ownership is concentrated, owners may control and monitor easily management activities. Thus, managers tend to implore strategies that explore and maximize loyalty- shareholders and customers values. Notwithstanding, when there is a spread of ownership among entities that are numerous, less control and monitoring paves way, allowing the managerial entities to be on the pursuit of other strategies. The theory of public choice has also been used by researchers to bring an explanation to ownership influences ( e.g., Martin and Parker (1997), Cuervo and Villalonga (2000)), whereby there was also the conclusion that firm performance are influenced by owners through their impart on firm

My interest in JLP stems from the fact that ownership and privatization forms of business organization are morally desirable. I believe that ownership is too important to be thought of in a purely instrumental way, but should be seen as intrinsically valuable and an opportunity to articulate for better loyalty and financial performance as well as economy growth.

The aim of my research was to explore ownership influence on organizational loyalty, by examining the practices related to it, the claims made about it and the consequences of ownership, be it positive or negative effect as widely argued by numerous participants, scholars and academics. Hence, my primary question of research was to explore the meaning of ownership influence in John Lewis Partnership. In furtherance to this, I sought to ‘’ speak to larger issues’’ (Kunda, 1992 : 23) by thinking deeply on the wider implication of the influence of ownership on organizational