Compensation strategy: Does business strategy influence compensation in high-technology firms?

Yoshio Yanadori*, Janet H. Marler

*Corresponding author for this work

Research output: Contribution to journalReview articlepeer-review

64 Citations (Scopus)


Drawing on the strategic employee group concept, this study empirically examines whether a firm's innovation strategy influences compensation systems for strategic employee groups in the high-technology industry. We focus on compensation packages for R&D employees who play a critical role in successful implementations of innovation strategy. Using compensation data for middle-level managers and professional employees from 237 firms in the high-technology industry, we found that a firm's strategic intention to pursue innovation has a significant influence on the relative pay level, compensation time horizon, and stock option vesting period lengths of this strategic employee group.

Original languageEnglish
Pages (from-to)559-570
Number of pages12
JournalStrategic Management Journal
Issue number6
Publication statusPublished - 2006 Jun
Externally publishedYes


  • Compensation strategy
  • High-technology firms
  • Strategic employee group

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management


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