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Complementarities of Human-Resource Management Practices: A Case for a Behavioral-Economics Perspective

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  • Florian Englmaier
  • Katharina Schüßler

Abstract

We stress the relevance of complementarities of human-resource management (HRM) practices for explaining persistent productivity differences across organizations. We give an overview of economics as well as strategic HRM literature, document gaps, and show how insights from behavioral economics can inform the analysis. To this end, we develop a simple agency model illustrating how social preferences influence the design and consequences of incentive schemes, investigate how auxiliary HRM practices can strengthen this interaction, and discuss other behavioral subfields that are also suited to inform research on complementarities. Finally, we give an outlook on further research in this field.

Suggested Citation

  • Florian Englmaier & Katharina Schüßler, 2016. "Complementarities of Human-Resource Management Practices: A Case for a Behavioral-Economics Perspective," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 172(2), pages 312-341, June.
    • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(201606)172:2_312:cohmpa_2.0.tx_2-t
    DOI: 10.1628/093245616X14551719150681
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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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