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The role of employee incentive pay in the competitiveness of family and non-family firms

Author

Listed:
  • Mirella Damiani

    (University of Perugia)

  • Fabrizio Pompei

    (University of Perugia)

  • Andrea Ricci

    (National Institute for Public Policy Innovation, INAPP, Roma)

Abstract

Insufficient attention has been paid to the different roles of wage incentives in the competitiveness of family and non-family firms. This paper addresses this issue and uses a sample of listed and non-listed Italian firms for 2007 and 2010 to show that family firms that adopt incentive wages obtain greater gains in competitiveness with respect to non-family firms. Unlike what occurs in non-family firms, the efficiency enhancing effect of incentive wages more than compensates for the premiums paid to employees and enables family firms to achieve significant gains in terms of competitiveness.

Suggested Citation

  • Mirella Damiani & Fabrizio Pompei & Andrea Ricci, 2019. "The role of employee incentive pay in the competitiveness of family and non-family firms," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(3), pages 805-839, October.
    • Handle: RePEc:spr:epolit:v:36:y:2019:i:3:d:10.1007_s40888-018-0135-1
    DOI: 10.1007/s40888-018-0135-1
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    References listed on IDEAS

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    Cited by:

    1. Stefano Amato & Rodrigo Basco & Nicola Lattanzi, 2022. "Contextualizing employment outcomes in family business research: current findings and future research avenues," Management Review Quarterly, Springer, vol. 72(2), pages 531-604, June.
    2. Galina Besstremyannaya & Sergei Golovan, 2019. "Reconsideration of a simple approach to quantile regression for panel data: a comment on the Canay (2011) fixed effects estimator," Working Papers w0249, New Economic School (NES).
    3. Galina Besstremyannaya & Sergei Golovan, 2019. "Reconsideration of a simple approach to quantile regression for panel data: a comment on the Canay (2011) fixed effects estimator," Working Papers w0249, Center for Economic and Financial Research (CEFIR).

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    More about this item

    Keywords

    Family firms; Performance-related pay; Labour productivity; Wages; Competitiveness;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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