We investigate whether referral-based hiring exacerbates or mitigates control problems. Incentive contracts can be used to attract employees with certain traits. However, whether the outcomes are positive for the firm or not depends on the quality of incentive contracts. Our research setting...

The study investigated the effects of individualistic and collectivist cultures (represented by U.S. and Chinese nationals residing in Taiwan, respectively) on individuals' decisions in a team-based working setting. The findings of a laboratory experiment indicated that only the U.S. subjects...

This study investigates the effects of national culture on the truthfulness of subordinates' upward communications under alternate pay schemes. U.S. nationals and Chinese nationals in Taiwan were used to represent members of two cultures that significantly diverge on three cultural dimensions...

In the current era of intensifying competition and globalization, two increasingly important management issues are how to ensure timely responses to threats and opportunities, and whether management practices need to be modified for application in diverse national settings. This study...

This study reports that changes in compensation from performance-sensitive (commission-based) to less performance-sensitive (base salary plus commission) schemes hurt employee performance but do not impair the company's. We analyzed performance data for 4,392 employees and 87 branches of a major...

The agent theory is of central importance to compensation contract, which argues that incentive intensity should be negatively associated with risk. Yet, previous studies have reported mixed findings on this relationship. This study empirically examines this relationship by utilizing data...