scholarly journals Market Competition and the Effectiveness of Performance Pay

2020 ◽  
Author(s):  
Pooyan Khashabi ◽  
Matthias Heinz ◽  
Nick Zubanov ◽  
Tobias Kretschmer ◽  
Guido Friebel
Keyword(s):  
Field Data ◽  
Pay For Performance ◽  
Market Competition ◽  
Performance Pay ◽  
Curvilinear Relationship ◽  
Specific Factors ◽  
Strong Competition ◽  
External Forces ◽  
Moderating Role

It is well established that the effectiveness of pay-for-performance (PfP) schemes depends on employee- and organization-specific factors. However, less is known about the moderating role of external forces such as market competition. Our theory posits that competition generates two counteracting effects—the residual market and competitor response effects—that vary with competition and jointly generate a curvilinear relationship between PfP effectiveness and competition. Weak competition discourages effort response to PfP because there is little residual market to gain from rivals, whereas strong competition weakens incentives because an offsetting response from competitors becomes more likely. PfP hence has the strongest effect under moderate competition. Field data from a bakery chain and its competitive environment confirm our theory and let us refute several alternative interpretations.

scholarly journals The Curvilinear Relationship Between Job Control and Voice: Role of Emotional Resistance to Change and Supervisor Developmental Feedback

SAGE Open ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 215824402110278
Author(s):  
Xian Tiantian ◽  
Zhang Zhenduo ◽  
Xiao Huan ◽  
Xiu Jing ◽  
Jia Wentong
Keyword(s):  
Resistance To Change ◽  
Negative Relationship ◽  
Job Control ◽  
Curvilinear Relationship ◽  
Conservation Of Resources ◽  
Mediating Role ◽  
Developmental Feedback ◽  
Emotional Resistance ◽  
Moderating Role

The purpose of this study was to delve into the underlying mechanism and contextual boundary condition of the U-shaped relationship between job control and voice at the episode level within the framework of conservation of resources theory. Adopting a two-wave experience sampling method, this study collected 265 matched cases nested in 53 Chinese employees for 5 consecutive days. By hierarchical linear regression, the U-shaped effect of job control on voice at the episode level was replicated. Furthermore, the mediating role of emotional resistance (ER) to change and to the moderating role of supervisor developmental feedback (SDF) was examined. Job control has a U-shaped effect on day-level voice and an inverted U-shaped effect on trait ER, which mediates the curvilinear relationship between job control and day-level voice. Daily SDF moderates the curvilinear relationship between job control and day-level voice such that daily SDF buffers the negative relationship between low job control and day-level voice, as well as amplifies the positive relationship between high job control and day-level voice. The current study unveils the mediating states and contextual boundary conditions of the curvilinear relationship between job control and day-level voice by testing the mediating role of ER and moderating role of SDF at the episode level, thereby further contributing to the literature on voice.

The moderating role of previous venture experience on breadth of learning and innovation and the impacts on SME performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kanhaiya K. Sinha ◽  
Chad Saunders ◽  
Simon Raby ◽  
Jim Dewald
Keyword(s):  
Design Methodology ◽  
Leadership Team ◽  
Higher Learning ◽  
Curvilinear Relationship ◽  
Content Type ◽  
Innovation Activities ◽  
The Relationship ◽  
Moderating Role ◽  
Practical Implications

PurposeThe purpose of this paper is to investigate the moderating role of previous venture experience on the relationship between learning breadth and innovation breadth, defined as the range of innovation types within a firm, and the impacts on SME performance.Design/methodology/approachA theoretical model was developed, and hypotheses were tested using step-wise multivariate regressions on survey data from 509 North American SME respondents.FindingsThe results demonstrate that the previous venture experience of a firm's top management plays a key role in enhancing the innovation breadth for a given level of learning breadth. There is a curvilinear relationship between innovation breadth and learning breadth, and increases in innovation breadth lead to increases in firm performance.Practical implicationsThe results indicate that organizations seeking higher performance returns by expanding their breadth of innovations need parallel attention on higher learning breadth in order to adequately capture the value from this broader set of innovations.Originality/valueThe paper contextualizes learning and innovation in the SMEs and argues that the consideration of diversity (breadth) of learning and innovation can help us understand their performance implications across industries. It also extends the effect of previous venture experience (PVE) of the leadership team in explaining performance. Beyond their ability to address external factors, PVE has a moderating effect on the relationship between learning and innovation breadth across the organization. Previous venture experience serves as both a guide and catalyst for investments in learning activities that lead to a broader range of innovation activities across the firm.

The curvilinear relationship between knowledge leadership and knowledge hiding

2019 ◽  
Vol 40 (6) ◽  
pp. 669-683 ◽  
Author(s):  
Qing Xia ◽  
Shumin Yan ◽  
Yuliang Zhang ◽  
Baizhu Chen
Keyword(s):  
Collective Identity ◽  
Psychological Ownership ◽  
Hierarchical Regression ◽  
Curvilinear Relationship ◽  
Content Type ◽  
Level Of Knowledge ◽  
Knowledge Leadership ◽  
Knowledge Hiding ◽  
Moderating Role

Purpose The purpose of this paper is to examine the curvilinear relationship between knowledge leadership and knowledge hiding and the moderating role of psychological ownership on influencing the curvilinear relationship. Design/methodology/approach In total, 403 data were collected from participants in a high-technology company via a two-wave survey. Hierarchical regression analyses were used to test the hypotheses. Findings Results revealed an inverted U-shaped relationship between knowledge leadership and knowledge hiding. The employees exhibited more knowledge hiding in a moderate level of knowledge leadership than in lower and higher levels of knowledge leadership. Moreover, psychological ownership significantly moderated the curvilinear relationship such that the inverted U-shaped relationship was more pronounced among employees with high psychological ownership. Practical implications Employees’ reaction to knowledge leadership may vary from different levels of knowledge leadership. Moreover, organizations should boost employees’ psychological ownership especially for the collective identity that helps them own knowledge as “ours.” Originality/value This study extends both the leadership and knowledge management behavior literatures.

scholarly journals Impact of Intellectual Capital on Firm Value: The Moderating Role of Managerial Ownership

2019 ◽  
Author(s):  
Aftab Ahmed ◽  
Muhammad Kashif Khurshid ◽  
Muhammad Usman Yousaf
Keyword(s):  
Intellectual Capital ◽  
Firm Value ◽  
Market Competition ◽  
Value Added ◽  
Sampling Technique ◽  
Systematic Sampling ◽  
Managerial Ownership ◽  
The Relationship ◽  
Moderating Role

Rapidly changing dynamics of globalization and increasing market competition are causing the companies all around the world confronting several new challenges and opportunities. To be competitive and successful apart from relative importance of physical resources, companies must adapt modern strategies and policies regarding market flexibility and development. The purpose of this study is to empirically investigate the relationship between intellectual capital and firm value. Furthermore, the moderating role of managerial ownership has been evaluated with the help of regression analysis. The sample included the panel data taken from non-financial firms listed on Pakistan stock exchange (PSX) covering the period 2010-2015. A sample of 79 firms out of 384 firms have been selected with the help of systematic sampling technique. VAIC (Value Added Intellectual Coefficient) model has been used for the calculation of intellectual capital. Tobin's Q has been taken as a measure of firm value. Managerial ownership has been tested as moderator. Based on data analysis, it is concluded that the relationship between intellectual capital and firm value is positively significant. It is also concluded that managerial ownership moderates the relationship between intellectual capital and firm value negatively.

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