The adoption of employee share ownership plans (ESOPs) in Nigeria

This study investigated the factors that influence the adoption of ESOPs in Nigeria. Furthermore, the study investigated the influence of the adoption of ESOPs on organisational performance, employee retention and employee commitment. The study results reveal that trade union responsiveness, reforms, awareness of employee benefits and taxation implication positively influence the adoption of ESOPs based on transparency. The results in this study further reveal that trade union responsiveness, takeovers, reforms, awareness of employee benefits and taxation implication effectively influence the adoption of ESOPs based on two-way communication. In addition, the study results reveal that trade union responsiveness, takeovers, reforms, awareness of employee benefits and trust positively influence the adoption of ESOPs based on empowerment. The study further reveals that adoption of ESOPs based on transparency, two-way communication and empowerment leads to organisational performance, employee retention and employee commitment. This study, being the first of its kind in Nigeria, filled the gap that existed in the Nigerian literature in respect of the awareness and adoption of ESOPs. This study provides literature and theoretical model that can be used as a foundation by organisations and the government to start up the adoption of ESOPs. This study showed that ESOPs is beneficial to boost the economy, enhance desired organisational outcomes (organisational performance, employee retention and employee commitment) and meet the financial and retirement needs of employees. However, for organisations and employees to enjoy the full benefits of ESOPs, underlying forces such as, trade union responsiveness, takeovers, reforms, awareness of employee benefits, trusts and taxation implication must be taken into account. Furthermore, the adoption, implementation and operations of ESOPs will be successful management, trade union leaders and employees utilise strategies such as, transparency, two-way communication and empowerment