Session 19

Motivating and Governing Human Capital

Track L

Date: Tuesday, October 6, 2015


Time: 11:00 – 12:15


Room: Director's Row H

Session Chair:

  • Daniel Olson, University of Washington

Title: Competing Through Contracts and Investments: Selection, Matching and Firm Organization in Residential Real Estate


  • Orie Shelef, Stanford University
  • Amy Nguyen-Chyung, University of Michigan

Abstract: We examine the interaction of competition for workers through contracts and through investment in resources utilizing a detailed employee-employer panel that allows us to separately estimate worker, firm, and equilibrium predictions. We find that higher powered contracts select better workers, but workers value firm characteristics other than pay. We then model worker selection when firms compete to attract workers through both contracts and investments. Because firms that offer very high powered incentives are able to capture less of the return to workers from complementary investments high powered incentives are correlated with fewer resources. Assortative matching among workers remains – better workers will be more likely to work together, but they will be at worse firms. We match this, and additional model predictions to the data.

Title: Competition in Markets for Human Capital: The Implications of Social Comparison Costs and Multi-Office Firms


  • Daniel Olson, University of Washington

Abstract: Multi-office firms compete in various local labor markets, and their local wages are subject to local market competitive forces. In responding to wage competition in a local labor market, I propose that the threat of social comparison costs imposed by employees in other offices may require firms to raise salaries for employees in other offices, not just those that draw from the local market. This study will test, in the context of the legal services industry, whether the additional costs of response causes firms to delay raising salaries in the focal office or to change the scope of their firms. If firms elect to raise salaries across offices, I will explore the competitive responses of firms in those markets to the salary increases and the implications for the diffusion of wages across local labor markets.

Title: How Performance Incentives Shape Individual Exploration and Exploitation: Evidence from Micro Data


  • Sunkee Lee, INSEAD
  • Philipp Meyer-Doyle, INSEAD

Abstract: We integrate the exploration/exploitation and incentives literatures to examine how performance incentives impact individual exploration vs. exploitation behaviors. We also investigate how this impact is dependent on the capabilities of individuals and peer-related performance comparisons, and whether the change in individual search behavior is random or intelligent. We use novel micro-data on commercial projects of sales employees at an e-commerce company to test our hypotheses. We find that individuals engage in more exploration after a reduction in performance-based incentives, yet the increase is driven by high-performers. Further, the increase in exploration recedes whenever an individual underperforms their direct peers. Finally, the nature of exploration following the incentive reduction shows to be intelligent, such that the performance generated by explorative ideas increases following the incentive change.

Title: The Mediating Effect of Growth on Motivation-Enhancing HR and New Venture Performance


  • David DeGeest, University of Groningen
  • Stephen Lanivich, Old Dominion University
  • Elizabeth Follmer, University of Iowa
  • Mark Mallon, Old Dominion University

Abstract: The purpose of this paper is to investigate how the use and adoption of motivation-enhancing human resource practices over time in new ventures contributes to positive changes in a firm, which fuels subsequent performance. In particular, we model how the effective use and adoption of these practices impacts performance by influencing growth in terms of number of employees and productivity of those employees. This study contributes to the literature by identifying a key mechanism linking human resource practices to firm outcomes in an entrepreneurial context, by integrating the resource-based view of the firm with theories of human resource management, and by more clearly delineating how human capital influences new venture outcomes.

All Sessions in Track L...

Sun: 08:00 – 09:15
Session 287: Strategic Human Capital in a Global Market
Sun: 09:45 – 11:00
Session 289: Seeing the Future in the Recent Past: Predicting Seminal Work
Sun: 11:15 – 12:30
Session 288: Strategy Microfoundations and Human Capital: What Have We Learned?
Sun: 16:15 – 17:30
Session 13: Employee Mobility: Barriers and Enablers
Sun: 17:45 – 00:00
Session 321: Strategic Human Capital Business Meeting
Mon: 08:00 – 09:15
Session 14: Typologies of Human Capital and Strategy
Mon: 11:15 – 12:30
Session 15: Human Capital, Company Networks, and Reputation
Session 204: Acquiring human capital: Process and outcomes
Mon: 13:45 – 15:00
Session 16: Human Capital and Innovation
Tue: 08:00 – 09:15
Session 18: Human Capital Architectures
Tue: 11:00 – 12:15
Session 19: Motivating and Governing Human Capital
Tue: 14:15 – 15:30
Session 20: New Frontiers in Human Capital Research
Tue: 15:45 – 17:00
Session 17: Human Capital and Entrepreneurship
Tue: 17:30 – 18:45
Session 21: Revisiting Theory in Strategic Human Capital Research

Strategic Management Society