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Knowledge-intensive sectors and the role of collective performance-related pay

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  • Stefania Cardinaleschi
  • Mirella Damiani
  • Fabrizio Pompei

Abstract

The main contribution of this study is showing that the efficiency effects of collective performance-related pay (CPRP) are more pronounced in knowledge-intensive service sectors (KISs) than in other sectors. The hypothesis is that human resource practices such as CPRP are particularly useful for enhancing firm performance when innovation-supporting knowledge is distributed among multiple skill sets and employee creativity, knowledge creation and knowledge sharing are key success factors for the firm. Cross-sectional estimates obtained for a national sample of approximately 3,800 Italian firms confirm this prediction. These results are validated by adopting a treatment effect approach to solve the self-selection problem.

Suggested Citation

  • Stefania Cardinaleschi & Mirella Damiani & Fabrizio Pompei, 2020. "Knowledge-intensive sectors and the role of collective performance-related pay," Industry and Innovation, Taylor & Francis Journals, vol. 27(5), pages 480-512, May.
    • Handle: RePEc:taf:indinn:v:27:y:2020:i:5:p:480-512
    DOI: 10.1080/13662716.2018.1561359
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    More about this item

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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