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

Yoshio Yanadori; Janet H. Marler

doi:10.1002/smj.521

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 journal › Review article › peer-review

72 Citations (Scopus)

Abstract

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 language	English
Pages (from-to)	559-570
Number of pages	12
Journal	Strategic Management Journal
Volume	27
Issue number	6
DOIs	https://doi.org/10.1002/smj.521
Publication status	Published - 2006 Jun
Externally published	Yes

Keywords

Compensation strategy
High-technology firms
Strategic employee group

ASJC Scopus subject areas

Business and International Management
Strategy and Management

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10.1002/smj.521

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abstract = "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.",

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AB - 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.

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

Abstract

Keywords

ASJC Scopus subject areas

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