Employee incentives to make firm specific investment: Implications for resource-based theories of corporate diversification

• Main Authors: WANG, Heli, Barney, Jay B.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2006
• Subjects: incentives in industry; industrial management; investments; employees; decision making; diversification in industry; risk management in business; business enterprises; diversified companies; business planning; employee motivation; management; Finance and Financial Management; Human Resources Management; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/3456; https://ink.library.smu.edu.sg/context/lkcsb_research/article/4455/viewcontent/Employee_Incentive_2006_pv.pdf
• Institution: Singapore Management University

We argue that the risk associated with the value of a firm's core resources has an impact on employee decisions to make firm-specific investments, independent of the threat of opportunism that might exist in a particular exchange. We further explore mechanisms firms may adopt to mitigate the em...