An experimental study of the interaction effects of incentive compensation, career ambition, and task attention on Chinese managers' strategic risk behaviors
Bibliographic Data
| ID | 12167373 |
|---|---|
| Authors | Daniel Han Ming Chng (China Europe International Business School Shanghai China, corresponding author), Joyce C Wang (0000-0001-8293-6870), Joyce Cong Ying Wang (University of Texas at Dallas Richardson Texas U.S.A.) |
| Year | 2015 |
| Volume | 37 |
| Issue | 5 |
| Pages | 719-737 |
| Publication date | 2015-11-10 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of Organizational Behavior (JOURNAL) |
| Journal identifiers | ISSN: 0894-3796 • E-ISSN: 1099-1379 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1002/job.2062 |
| OpenAlex | W2115505349 |
| Language | EN |
| Citations received | 1 |
| References cited | 44 |
Building on the person–pay interaction model, we developed and tested a model for the influence of managers' career ambition and task attention on their responses to incentive compensation under different conditions of firm performance. We argued that managers with greater career ambition and task attention will be more responsive to incentive compensation, thereby engaging in more strategic risk behaviors, such as strategic risk taking and strategic change. Results of our experiment using a managerial decision‐making game with a sample of Chinese managers partially supported this contingency perspective. Under the condition of performance decline, managers' career ambition only accentuated the positive relationship between incentive compensation and strategic change. By contrast, task attention strengthened the positive relationships between incentive compensation and both strategic risk taking and strategic change. However, under the condition of performance growth, neither managers' career ambition nor their task attention influenced their responses to incentive compensation. We discuss the implications for how organizational leaders can use incentive compensation to influence the strategic risk behaviors of managers. Copyright © 2015 John Wiley & Sons, Ltd
Business · Compensation (psychology · Contingency · Economics · Executive compensation · Incentive · Management · Microeconomics · Perspective (graphical · Political science · Public relations · Task (project management · Corporate Finance and Governance · Experimental Behavioral Economics Studies · Job Satisfaction and Organizational Behavior · Psychology · Social Psychology · Marketing
Agency Theory
Attention to Attention
Promises and lies
Upper Echelons
Theory of the firm
Prospect Theory
End behavior in sequences of finite Prisoner's Dilemma supergames A learning theory approach
Top-Management-Team Tenure and Organizational Outcomes
Intrinsic motivation and extrinsic incentives jointly predict performance
Incentives, Cooperation and Risk Sharing
| Citations per year | 0.33 |
|---|---|
| Citation span | 2023 - 2023 (1) |
| Highly cited | No |