Title: Congruence Between Pay Policy and Competitive Strategy in High-Performing Firms
Abstract:Based on existing strategic compensation theory, this study examines seven theoretical propositions concerning the link between business-level competitive strategy and pay policy. Canonical discrimina...Based on existing strategic compensation theory, this study examines seven theoretical propositions concerning the link between business-level competitive strategy and pay policy. Canonical discriminant analysis of 261 responses to a national survey show that high-performing firms whose strategy is dominated by Cost Leadership, Innovation, or Differentiation tactics adopt different pay policies. Further analysis shows that inferior firm performance is associated with the lack of fit between pay policy and business strategy. These findings support the need for a contingency approach in the design of pay policy.Read More
Publication Year: 1996
Publication Date: 1996-12-01
Language: en
Type: article
Indexed In: ['crossref']
Access and Citation
Cited By Count: 109
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot