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  • Spring 2023
  • Article

Incentive Contract Design and Employee-Initiated Innovation: Evidence from the Field

By: Wei Cai, Susanna Gallani and Jee-Eun Shin
This study examines how the design of incentive contracts for tasks defined as workers’ official responsibilities (i.e., standard tasks) influences workers’ propensity to engage in employee-initiated innovation (EII). EII corresponds to innovation activities that are... View Details
Keywords: Employee-initiated Innovation; Contract Design; Rank-and-file; Extra-role Behaviors; Compensation and Benefits; Motivation and Incentives; Innovation and Management
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  • 2020
  • Working Paper

Incentive Power and Knowledge Sharing Among Employees: Evidence from the Field

By: Wei Cai, Susanna Gallani and Jee-Eun Shin
There is consensus, both in the literature and in practice, about knowledge sharing within organizations being a key determinant of success. However, organizations struggle to sustain employees’ engagement in knowledge sharing. One challenge lies in the fact that,... View Details
Keywords: Organizational Knowledge Sharing; Employee Driven Innovation; Innovation Appropriability; Contract Design; High-powered Incentives; Low-powered Incentives; Incentives; Pay-for-Performance; Rank-and-file; Employees; Knowledge Sharing; Innovation and Invention; Motivation and Incentives; Creativity; Performance
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  • 17 Jan 2018
  • Research & Ideas

If the CEO’s High Salary Isn't Justified to Employees, Firm Performance May Suffer

kutaytanir It’s no surprise that business executives make more money than lower-level employees. But when that pay disparity between a CEO and the average worker is perceived as unfair, the result may be more than unhappy workers: A firm’s performance can deteriorate.... View Details
Keywords: by Dina Gerdeman
  • 08 Oct 2010
  • What Do You Think?

Will Transparency in CEO Compensation Have Unintended Consequences?

Summing Up The Dodd-Frank legislation provision requiring the publication of the ratio of CEO compensation to that of the average compensation level of all employees in public companies will have little or no impact on CEO compensation levels. That's the conclusion of... View Details
Keywords: by Jim Heskett
  • June 30, 2021
  • Article

Rosabeth Moss Kanter: Let Employees Take the Lead on ESG

By: Rosabeth M. Kanter
Companies that don’t give rank-and-file workers a central role in their environmental, social and governance (ESG) work are making a mistake. They risk alienating values-oriented employees who question company practices, and they miss a big opportunity for employee... View Details
Keywords: ESG; ESG (Environmental, Social, Governance) Performance; Leaders; Talent Acquisition; Talent Retention; Engagement; Organizations; Environmental Sustainability; Social Issues; Employees; Leadership; Talent and Talent Management
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  • 22 Sep 2008
  • Research & Ideas

The Silo Lives! Analyzing Coordination and Communication in Multiunit Companies

internal communication. Second, in this company at least, junior executives, women, and members of the salesforce were the key actors in bridging the silos in the firm. Third, communication patterns were extremely hierarchical: Executives, middle managers, and View Details
Keywords: by Sarah Jane Gilbert
  • 2025
  • Working Paper

Impact Investing and Worker Outcomes

By: Josh Lerner, Markus Lithell and Gordon M. Phillips
Impact investors claim to distinguish themselves from traditional venture capital and growth equity investors by also pursuing environmental, social, and governance (ESG) objectives. Whether they successfully do so in practice is unclear. We use confidential Census... View Details
Keywords: ESG; Corporate Social Responsibility and Impact; Private Equity; Venture Capital; Wages
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  • 09 Apr 2018
  • Sharpening Your Skills

The Dark Side of Performance Bonuses

Quotas Motivate the Sales Force Best Bonus programs are effective for motivating sales people, but also costly for companies to maintain. Which compensation schemes work best? If the CEO’s High Salary Isn't Justified to Employees, Firm Performance May Suffer View Details
Keywords: by Sean Silverthorne
  • 01 Nov 2022
  • Research & Ideas

A Penny for Your Thoughts? For Big-Picture Ideas, the Right Pay Structure Matters

production pressures that left workers too busy to suggest innovations, nor did it come from supervisors—predominantly on fixed-pay contracts—stuffing the box with ideas. Rather, the dearth of bigger-picture innovation on the part of View Details
Keywords: by Scott Van Voorhis
  • 24 Jan 2011
  • HBS Case

Terror at the Taj

with Ruth Page and David Habeeb of the HBS Educational Technology Group, Terror at the Taj Bombay: Customer-Centric Leadership documents the bravery and resourcefulness shown by rank-and-file employees during the siege.  Video interviews... View Details
Keywords: by Julia Hanna; Accommodations
  • 20 Dec 2018
  • Research & Ideas

Most Popular Stories and Research Papers of 2018

blues, and a job set up for failure. If the CEO’s High Salary Isn't Justified to Employees, Firm Performance May Suffer Researcher Ethan Rouen discovers that rank-and-file employees understand the boss deserves a big salary, but only when... View Details
Keywords: by Sean Silverthorne
  • 30 Nov 2011
  • Research & Ideas

Only Capitalists Can Save Capitalism

separating corporate leaders from their rank-and-file workers has become a hot-button issue in the upcoming presidential election. And in public opinion polls, business moguls are cushioned from the bottom of the reputation scale only by... View Details
Keywords: by Maggie Starvish
  • 05 May 2003
  • Research & Ideas

Sharing the Responsibility of Corporate Governance

Q: You've done research on the role of shareholders in holding corporations responsible for their actions. Should any of the burden of ethical corporate behavior rest on shareholders? How about the rank-and-file employees? A: The short... View Details
Keywords: by Carla Tishler

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