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The High Cost of Low Wages: Does Maquiladora Compensation Reduce Turnover?

Author

Listed:
  • Janice S Miller

    (University of Wisconsin-Milwaukee)

  • Peter W Hom
  • Luis R Gomez-Mejia

    (Arizona State University)

Abstract

We determined which compensation practices of American-owned plants in Mexico reduced turnover. Regression revealed that profit-sharing and saving plans lowered turnover, while most pay forms did not. We discussed these findings within a national culture approach to compensation administration.© 2001 JIBS. Journal of International Business Studies (2001) 32, 585–595

Suggested Citation

  • Janice S Miller & Peter W Hom & Luis R Gomez-Mejia, 2001. "The High Cost of Low Wages: Does Maquiladora Compensation Reduce Turnover?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(3), pages 585-595, September.
    • Handle: RePEc:pal:jintbs:v:32:y:2001:i:3:p:585-595
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    Citations

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    Cited by:

    1. Prince, Nicholas R. & Bruce Prince, J. & Kabst, Rüediger, 2020. "National culture and incentives: Are incentive practices always good?," Journal of World Business, Elsevier, vol. 55(3).
    2. Kurt LOESS & Van V. MILLER & David YOSKOWITZ, 2008. "Offshore employment practices: An empirical analysis of routines, wages and labour turnover," International Labour Review, International Labour Organization, vol. 147(2-3), pages 249-273, June.
    3. Madhu Bala & G.R.B. Chalil & Amit Gupta, 2012. "Emic and Etic: Different Lenses for Research in Culture," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 37(1), pages 45-60, February.
    4. Christensen-Salem, Amanda & Mesquita, Luiz F. & Hashimoto, Marcos & Hom, Peter W. & Gomez-Mejia, Luis R., 2021. "Family firms are indeed better places to work than non-family firms! Socioemotional wealth and employees’ perceived organizational caring," Journal of Family Business Strategy, Elsevier, vol. 12(1).
    5. Jorge A. Wise & Veronica A. Rojas-Mendizabal, 2018. "Attraction and Retention Model: Case of Mexicali, B.C., Mexico," FIIB Business Review, , vol. 7(3), pages 156-166, September.
    6. Moriah Meyskens & Karen Paul, 2010. "The Evolution of Corporate Social Reporting Practices in Mexico," Journal of Business Ethics, Springer, vol. 91(2), pages 211-227, February.
    7. Olfa Aissa, 2016. "A Meta-Analysis of the Financial Participation Impact on Firm Performance," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(8), pages 186-186, July.
    8. Howell, Jon P. & Romero, Eric J. & Dorfman, Peter W. & Paul, Jim & Bautista, J. Arnoldo, 2003. "Effective leadership in the Mexican maquiladora: challenging common expectations," Journal of International Management, Elsevier, vol. 9(1), pages 51-73.
    9. Petr Petera & Jana Fibírová, 2015. "Basic Approaches to Profit-Sharing and Ideas for Utilization [Základní přístupy k "profit-sharingu" a náměty na další využití]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2015(3), pages 97-117.
    10. Fan, Qingyue & Chen, Jingqiu & Yang, Weiyue, 2024. "Applying a push–pull perspective to migrant worker turnover: The role of retention decision satisfaction and geographic distance," Journal of Business Research, Elsevier, vol. 178(C).
    11. Mollick, André Varella, 2009. "Employment Responses of Skilled and Unskilled Workers at Mexican Maquiladoras: The Effects of External Factors," World Development, Elsevier, vol. 37(7), pages 1285-1296, July.
    12. Selvarajan, T.T. & Singh, Barjinder & Solansky, Stephanie, 2018. "Performance appraisal fairness, leader member exchange and motivation to improve performance: A study of US and Mexican employees," Journal of Business Research, Elsevier, vol. 85(C), pages 142-154.
    13. Reiche, B. Sebastian, 2008. "The configuration of employee retention practices in multinational corporations' foreign subsidiaries," International Business Review, Elsevier, vol. 17(6), pages 676-687, December.
    14. Gomez-Mejia, Luis R. & Mendoza-Lopez, Anabel & Cruz, Cristina & Duran, Patricio & Aguinis, Herman, 2024. "Socioemotional wealth in volatile, uncertain, complex, and ambiguous contexts: The case of family firms in Latin America and the Caribbean," Journal of Family Business Strategy, Elsevier, vol. 15(1).
    15. Brau, James C. & Rodríguez, Javier, 2009. "An empirical analysis of Mexican and US closed-end mutual fund IPOs," Research in International Business and Finance, Elsevier, vol. 23(1), pages 1-17, January.

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