Coordination under the Shadow of Career Concerns
AbstractA firm's innovation process requires employees to develop novel ideas and to coordinate with each other to turn the tacit knowledge embodying these ideas into better products and services. Such work outcomes provide signals about employees' abilities to the labor market, and therefore career concerns arise. The effects of career concerns can both be good' (enhancing incentives for effort in developing ideas) and bad' (preventing voluntary coordination). Our model shows how a firm can take these conflicting forces into account through the design of its explicit incentive system and the way it organizes work processes.
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Bibliographic InfoArticle provided by De Gruyter in its journal The B.E. Journal of Theoretical Economics.
Volume (Year): 10 (2010)
Issue (Month): 1 (March)
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Web page: http://www.degruyter.com
Other versions of this item:
- D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
- M12 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Personnel Management; Executives; Executive Compensation
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
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