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The impact of compensation on the performance of competence-exploiting and competence-creating FDI

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  • Dimitris Manolopoulos

Abstract

In the face of the current turbulent economic environment, multinational enterprises may choose to invest in R%D for sustained competitiveness. This study seeks to provide insights on the impact of MNEs' compensation strategies on the performance of geographically-dispersed R%D. Our findings support the existence of a multi-faceted context of compensation dimensions and variables positively associated with R%D output; factoring on the differentiated mandates of decentralised units. Further, we demonstrate that the provision of financial rewards and the effective organisational design stand out as the most influential drivers of advanced R%D performance; regardless the type of research implemented in these units.

Suggested Citation

  • Dimitris Manolopoulos, 2016. "The impact of compensation on the performance of competence-exploiting and competence-creating FDI," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 18(2), pages 199-215.
    • Handle: RePEc:ids:gbusec:v:18:y:2016:i:2:p:199-215
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