EconPapers    
Economics at your fingertips  
 

ALWAYS DESIRE MORE? CEO PERCEPTIONS OF RELATIVE COMPENSATION, RISK PROPENSITY, AND INNOVATION IN SMEs

Andres Felipe Cortes, Youngeeun Lee and Pol Herrmann
Additional contact information
Andres Felipe Cortes: Jack Welch College of Business & Technology, Sacred Heart University, 5151 Park Avenue. Fairfield, CT 06825, United States
Youngeeun Lee: College of Business and Economics, California State University, Los Angeles, 5151 State University Drive. Los Angeles, CA 90032, United States
Pol Herrmann: Bob and Kay Smith Entrepreneurship, Debbie and Jerry Ivy College of Business, Iowa State University, 2167 Union Drive. Ames, IA 50011, United States

International Journal of Innovation Management (ijim), 2023, vol. 27, issue 09n10, 1-21

Abstract: We study how the chief executive officers (CEOs) compensation perceptions and risk propensity influence exploratory innovation in small- and medium-sized enterprises (SMEs). Based on survey data collected from 381 CEOs of private SMEs in Colombia, we find that (1) CEO underpayment perceptions have a positively increasing relationship with exploratory innovation, (2) CEO overpayment perceptions have a positively decreasing relationship with exploratory innovation, and (3) CEOs’ risk propensity does not moderate these relationships. Our study informs small business managers, boards of directors, and policy makers on how compensation aspirations and comparisons serve as motives for exploratory behaviour. Our study also represents a unique attempt to capture CEOs’ perceptions of their compensation and explore their influence on strategic outcomes. Further, we underscore the need to extend social comparison theories to better understand how CEOs’ compensation and dispositional motives shape firms.

Keywords: Innovation; relative compensation; risk propensity; CEO (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S1363919623500457
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:ijimxx:v:27:y:2023:i:09n10:n:s1363919623500457

Ordering information: This journal article can be ordered from

DOI: 10.1142/S1363919623500457

Access Statistics for this article

International Journal of Innovation Management (ijim) is currently edited by Joe Tidd

More articles in International Journal of Innovation Management (ijim) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().

 
Page updated 2025-03-20
Handle: RePEc:wsi:ijimxx:v:27:y:2023:i:09n10:n:s1363919623500457