Employee Incentives for Rent Generation: The Role of Risk to Core Resource Value

Publication Type

Conference Proceeding Article

Publication Date

2003

Abstract

The paper extends the resource-based view of the firm to analyze the incentives of a firm's employees to make specific human capital investments that help generate rents. It argues that these incentives are affected by the risk to the value of the firm's core resource, which is determined by the factors in the product market where the resource is deployed. Furthermore, diversification based on the firm's core resource provides incentives for employees to specialize.

Keywords

Incentives in industry, human capital, capital investments, risk exposure, rent (economic theory)

Discipline

Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

Academy of Management Proceedings

First Page

CC1

Last Page

CC6

ISSN

0065-0668

Identifier

10.5465/AMBPP.2003.13793254

Publisher

Academy of Management

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