Strategic Management Journal2014-12-31 8:35 PM

Strategic incentives to human capital 


Alfonso Gambardella, Claudio Panico and Giovanni Valentini


Abstract


Motivating human capital in knowledge-intensive activities is a serious managerial challenge because it is difficult to link rewards to actions or performance. Firms instead might motivate knowledge workers by offering them opportunities to increase personal benefits (e.g., learning, satisfaction) through autonomy in the decision-making process. Our model shows that firms can offer less autonomy in projects closer to their core business: Because firm specialization raises the value of the project's outcomes, it also increases the benefits for knowledge workers, who derive motivation even though they make fewer decisions to support their realization of personal goals. Projects farther from the core offer weaker firm contributions, so firms can motivate knowledge workers by allowing them to benefit from greater autonomy. We discuss several implications of our analysis.


Full Article  

KEYWORDS

SHARE & LIKE

COMMENTS

ABOUT THE AUTHOR

Strategic Management Journal

The Strategic Management Journal seeks to publish the highest quality research with questions, evidence and conclusions that are relevant to strategic management and engaging to strategic management scholars.

0 Following 17 Fans 0 Projects 53 Articles

SIMILAR ARTICLES

AbstractOrganizational renewal requires that a firm's top managers make timely adjustments in their mental models following significant changes in the

Read More

AbstractDeliberate and emergent strategies may be conceived as two ends of a continuum along which real-world strategies lie. This paper seeks to devel

Read More

Clint Chadwick, Janice F. Super and Kiwook KwonKeywords: resource orchestration; resource-based theory; HR systems; firm performance; structural equati

Read More

Fernando F. Suarez, Stine Grodal and Aleksios GotsopoulosKeywords:entry-timing advantages; categories; first-mover advantage; industry life cycle; domi

Read More

AbstractThis article argues that strategy, like charity, begins at home. Specifically, economy is the best strategy. That is not to say that strategizi

Read More

AbstractThe central argument is that firm behavior is the result of how firms channel and distribute the attention of their decision-makers. What decis

Read More

AbstractRenewed interest in the resource-based theory of the firm has focused attention on the role of heterogeneous organizational ‘competence’ in com

Read More

AbstractIn virtually all economic analyses, differences among firms in the same line of business are repressed, or assumed to reflect differences in th

Read More

AbstractDefining ordinary or ‘zero-level’ capabilities as those that permit a firm to ‘make a living’ in the short term, one can define dynamic capabil

Read More

AbstractAlliances and similar cooperative efforts are receiving increased attention in the strategic management literature. These relationships differ

Read More