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 | |
| 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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