Publication Type
Journal Article
Version
publishedVersion
Publication Date
4-2006
Abstract
We argue that the risk associated with the value of a firm's core resources has an impact on employee decisions to make firm-specific investments, independent of the threat of opportunism that might exist in a particular exchange. We further explore mechanisms firms may adopt to mitigate the employee incentive problem stemming from the risk associated with core resource value. These arguments shed new light on resource-based theories of corporate diversification.
Keywords
incentives in industry, industrial management, investments, employees, decision making, diversification in industry, risk management in business, business enterprises, diversified companies, business planning, employee motivation, management
Discipline
Finance and Financial Management | Human Resources Management | Strategic Management Policy
Research Areas
Lee Kong Chian School of Business (LKCSB)
Publication
Academy of Management Review
Volume
31
Issue
2
First Page
466
Last Page
476
ISSN
0363-7425
Identifier
10.5465/AMR.2006.20208691
Publisher
Academy of Management
Citation
WANG, Heli and Barney, Jay B..
Employee incentives to make firm specific investment: Implications for resource-based theories of corporate diversification. (2006). Academy of Management Review. 31, (2), 466-476.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/3456
Copyright Owner and License
Publisher
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.5465/AMR.2006.20208691
Included in
Finance and Financial Management Commons, Human Resources Management Commons, Strategic Management Policy Commons