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

Cardinaleschi Stefania, Damiani Mirella and Fabrizio Pompei ()

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Collective bargaining; performance-related pay; firm performance (search for similar items in EconPapers)
JEL-codes: D23 J33 (search for similar items in EconPapers)
Date: 2018-12-28
New Economics Papers: this item is included in nep-cse, nep-hrm, nep-ino, nep-knm and nep-lma
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