Pay-for-performance, employee participation, and SME performance
Authors: Taiyuan Wang, Stewart Thornhill, and Bin Zhao
Overview
Abstract (English)
This study examines how pay-for-performance (PFP) systems affect the performance of small- and medium-sized enterprises (SMEs). We decompose PFP into two dimensions: scope and depth. PFP scope captures the variety of performance measures and reward types included in a firm’s PFP system, and PFP depth reflects the relative amount of performance-based pay compared with total pay. We posit that PFP scope has a positive whereas PFP depth has an inverted U-shaped effect on employee participation, which in turn enhances SME performance. Analysis of data collected at both employee and firm levels of 444 SMEs during 1999-2006 supported these hypotheses.
Abstract (French)
Please note that abstracts only appear in the language of the publication and might not have a translation.
Details
| Type | Journal article |
|---|---|
| Author | Taiyuan Wang, Stewart Thornhill, and Bin Zhao |
| Publication Year | 2018 |
| Title | Pay-for-performance, employee participation, and SME performance |
| Volume | 56 |
| Journal Name | Journal of Small Business Management |
| Number | 3 |
| Pages | 412-434 |
| Publication Language | English |
- Taiyuan Wang
- Taiyuan Wang, Stewart Thornhill, and Bin Zhao
- Pay-for-performance, employee participation, and SME performance
- Journal of Small Business Management
- 56
- 2018
- 3
- 412-434