Designing an Implementation Model of Employee Stock Ownership Plan (ESOP) in Iranian Startups

Document Type : Original Article

Authors
Mehran Arabi
Ehsan Rahmaninia
Malek Taj Maleki Oskouei
Department of Accounting, N.T.C., Islamic Azad University, Tehran, Iran
10.22034/jmaak.2025.78975.4663
Abstract
This study aims to design a model for implementing Employee Stock Ownership Plans (ESOP) in Iranian startups. Conducted within an interpretivist paradigm and an inductive approach, the research employs Strauss and Corbin’s systematic grounded theory method for qualitative data analysis. Data were collected through semi-structured interviews with 18 experts in the fields of startups, human resources, information technology, and law, and analyzed using open, axial, and selective coding.
The findings reveal the interplay of causal factors—including legal, financial, and cultural constraints—as well as contextual and intervening conditions, and implementation strategies, all of which influence the success of ESOP implementation. The proposed model provides a comprehensive and localized framework for understanding the process and challenges of ESOP implementation in Iranian startups. It serves as a strategic guide to enhance effectiveness, motivation, and employee retention within this emerging entrepreneurial ecosystem. Moreover, the model can serve as a practical and strategic reference for policymakers, managers, and researchers in the fields of innovation and human resource management.
Keywords
Employee Stock Ownership Plan (ESOP), Startups, Grounded Theory
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