Employee incentives to make firm specific investment: Implications for resource-based theories of corporate diversification
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.
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
Business Administration, Management, and Operations | Finance and Financial Management
Academy of Management Review
Academy of Management
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. Research Collection Lee Kong Chian School Of Business.
Available at: http://ink.library.smu.edu.sg/lkcsb_research/3456