Knowledge-intensive sectors and the role of collective performance-related pay

Stefania, Cardinaleschi and Mirella, Damiani and Fabrizio, Pompei (2018): Knowledge-intensive sectors and the role of collective performance-related pay. Published in: Industry and Innovation (28 December 2018)

Abstract

The main contribution of this study is showing that the efficiency effects of collective performance-related pay (CPRP) are more pronounced in knowledge-intensive service sectors (KISs) than in other sectors. The hypothesis is that human resource practices such as CPRP are particularly useful for enhancing firm performance when innovation-supporting knowledge is distributed among multiple skill sets and employee creativity, knowledge creation and knowledge sharing are key success factors for the firm. Cross-sectional estimates obtained for a national sample of approximately 3,800 Italian firms confirm this prediction. These results are validated by adopting a treatment effect approach to solve the self-selection problem.

• Item Type: MPRA Paper
• Language: English
• Keywords: Collective bargaining, performance-related pay, firm performance
• Subjects: D - Microeconomics > D2 - Production and Organizations > D23 - Organizational Behavior ; Transaction Costs ; Property Rights; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J33 - Compensation Packages ; Payment Methods

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