Compensation incentive contract of the subject librarians based on the H-M model

Based on the H-M model, the compensation incentive model is constructed under the inter-task cost function. The best compensation incentive contract is constructed by solving the incentive model, and the incentive characteristics are analysed. The results show that the best incentive intensity decreases as the subject service selectivity increases. The higher incentive intensity of university managers for specific tasks, the lower efforts of subject librarians for another specific task. Moreover, when the tasks are substituted for each other, the profit-sharing ratios corresponding to different tasks are complementary. Finally, we establish the econometric empirical models to test these results.

The Incentive Mechanism of the Subject Librarians with Computer Information Retrieval Under Competition

Based on the H-M model, the optimal incentive model under competition was constructed, the best incentive system was constructed by solving the model, and its incentive characteristics are analyzed. Based on the theory of econometrics, an empirical model of incentive system was constructed, and the correlation and significance between the main core variables and incentive intensity are empirically tested. The results show that competition has a significant effect and positive effect on incentive level. Incentive level has a non-linear correlation with service cost and risk preference, within a certain range, the best incentive level is negatively related to them.

Study on incentive and supervision mechanisms of technological innovation in megaprojects based on the principal-agent theory

PurposeThe high uncertainty of technological innovation in megaprojects brings great challenges to the R&D institution and also acts as a trigger for moral hazard. The incentive and supervision are effective means to improve the performance of innovation. The purpose of this paper is to propose appropriate incentive and supervision mechanisms to reduce information asymmetry and improve the efficiency of incentives. Suggestions on technological innovation are put forward to megaprojects management.Design/methodology/approachAccording to the principal-agent theory, the research develops incentive models under three states, i.e. information symmetry, information asymmetry and information asymmetry based on supervision mechanism. The Bayesian theory is employed to prove the effectiveness of the novel supervision method based on risk assessment.FindingsThe results indicate that under the information asymmetry, the incentive intensity is positively correlated with the social benefits coefficient, and negatively correlated with the patent benefits coefficient. The R&D effort and the owner's incentive intensity decline with the increase of information asymmetry. The supervision of risks can effectively reduce the degree of information asymmetry, and the higher the uncertainty of innovations, the more significant the effect of supervision is. As the supervision intensity increases, the incentive intensity, the R&D effort and the innovation output will increase. In addition, the R&D institutions with high innovation capability, low unit cost of R&D and low risk-aversion are more willing to make efforts to innovate.Originality/valueThis study fills the research gap on incentive and supervision of technological innovation in megaprojects. The externality of innovation benefits is considered in the model. The traditional incentive model is extended through the introduction of supervision. Furthermore, a novel supervision method based on risk assessment is proposed. The results validate the importance of risk management in technological innovation and provide a new insight for project management.

Strategic Priorities and Organizational Design

ABSTRACT This paper examines how relations among organizational design choices (subjective performance evaluation, delegation, incentive intensity) vary with strategic priorities. In particular, I examine firms' organizational designs when multiple strategies are followed and managers need to be incentivized to make strategy-consistent decisions balancing different, partially opposing objectives. Analyzing survey data from 151 firms, I find support for my predictions: subjective performance measurement and incentive intensity are complements for firms following a low cost and a differentiation strategy simultaneously. In contrast, and in line with prior literature, incentive intensity has a substitutive relation with both subjective weighting and discretion for firms following a one-dimensional strategy. The relation between delegation and subjectivity or incentive intensity does not vary systematically across strategic priorities. My findings suggest that firms couple subjective performance measurement and incentive intensity to address the challenge of incentivizing balanced actions when a low cost and a differentiation strategy are followed simultaneously.

Incentive Mechanism for Inhibiting Developer’s Moral Hazard Behavior in China’s Sponge City Projects

As a new sustainable urban development concept, the Sponge city has an important influence on the stormwater treatment. The low-impact development (LID) system of nonpublic lands plays an important role in the entire construction of Sponge city. In the nonpublic lands’ LID system construction, a principal-agent relationship exists between the government and developer and the effect of construction mainly depends on the developer’s operation and management. Due to the asymmetry of information and the different benefit goals, the developer could be prone to take moral hazard behavior to damage the project and public’s interests. In this paper, based on the principal-agent relationship between the government and developer in Sponge city projects, principal-agent incentive models under the existence of developer’s moral hazard tendency were constructed to help the developer invest an optimal efforts level. The results show that an increase in incentive intensity would increase the developer’s optimal level of productive efforts in the presence of developer’s moral hazard tendency; this can indirectly cause an increase in total output performance of Sponge city, thus realizing a “win-win” effect between the government and developer. Likewise, a larger incentive intensity can also help reduce the developer’s moral hazard tendency. The more obvious moral hazard tendency of developer, the larger incentive coefficient should be. The findings provide reference for government seeking to specify incentive contracts from a theory perspective and curbing developer’s potential moral hazard behavior in Sponge city projects.