Why are Small Firms Different? Managers’ Views

B-Tier
Journal: Scandanavian Journal of Economics
Year: 2004
Volume: 106
Issue: 3
Pages: 437-452

Authors (1)

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Do incentives differ between large and small organizations? Results from a representative survey of compensation managers are used to shed light on the issues. I find that (i) small establishments rely less on pecuniary incentives, and have a significantly more hostile attitude towards incentive schemes based on competition and relative rewards; (ii) large units are more vulnerable to mechanisms of efficiency wages, effects that remain even after controlling for differences in monitoring ability; (iii) large units are more prone to indicate that negative reciprocity is important, and that their employees care about relative pay. I argue that these findings fit with behavioral stories of incentives and motivation, in particular those stressing group interaction effects, inequity aversion and gift exchange.

Technical Details

RePEc Handle
repec:bla:scandj:v:106:y:2004:i:3:p:437-452
Journal Field
General
Author Count
1
Added to Database
2026-01-24