THE EFFECT OF COMPENSATION PROGRAM AND STRUCTURE ON SBU COMPETITIVE STRATEGY: A STUDY OF TECHNOLOGY-INTENSIVE FIRMS

In this paper we examine the impact various compensation programs have upon businesslevel strategy for technology-intensive firms. Similarly, we examine the effect of centralization of R&D and non-R&D decision-making, formality of procedures, and SBU size on competitive strategy. Analysis of...

Full description

Saved in:
Bibliographic Details
Published inStrategic management journal Vol. 12; no. 1991; p. 353
Main Authors Galbraith, Craig S, Merrill, Gregory B
Format Journal Article
LanguageEnglish
Published Chichester Wiley Periodicals Inc 01.07.1991
Subjects
Competition
Decision making
Diversification
Equity
Executive compensation
Human capital
Incentives
Influence
Investment policy
Managers
R&D
Research & development
Strategic management
Wages & salaries
Online AccessGet full text

Cover

More Information
Summary:In this paper we examine the impact various compensation programs have upon businesslevel strategy for technology-intensive firms. Similarly, we examine the effect of centralization of R&D and non-R&D decision-making, formality of procedures, and SBU size on competitive strategy. Analysis of data from 79 SBUs suggest that there is a resource tradeoff between marketing-oriented strategies and R&D-oriented strategies, and that managers who operate under certain types of compensation programs will tend to favor R&D/innovation strategies and capital investment over other alternatives. Structure and competitive position also appear to play a significant role in determining technology and investment strategy.
ISSN:0143-2095
1097-0266