Key Data

	When: September 20th, 4:00 pm till 5:30 pm
	Where: GSOM SPbU, city campus, Volkhovskiy per., 3, room 408
	Recommended for: students, doctoral students and academic staff
	Working language: English
	Participation: registration required

 

 

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Abstract

 

It is well established that the effectiveness of pay-for-performance (PfP) schemes depends on employee- and firm-specific factors. Much less is known about the role of factors outside the firm. We investigate the role of market competition on the effectiveness of PfP. Our theory posits that there are two counteracting effects, a business stealing and a competitor response effect, that jointly generate an inverted U-shape relationship between PfP effectiveness and competition. Weak competition creates low incentives to exert effort because there is little extra market to gain, while strong competition creates low incentives as competitors respond more. PfP hence has the strongest effect for moderate competition. We test this prediction with a field experiment on a retail chain which confirms our theory and refutes alternative explanations..

 

About the speaker

 

Nick Zubanov, PhD, professor (W3) of Organizational Economics at the University of Konstanz

Work experience:

Since October 2016 Professor (W3) of Organizational Economics
2013 – 2016, Professor (W3) of management science and strategy at Goethe University Frankfurt
2011 – 2013, Assistant professor of economics at Erasmus University Rotterdam
2009 – 2011, Assistant professor of human resource studies at Tilburg University
2007 – 2009, Researcher at CPB Netherlands Bureau for economic policy analysis

Specific research interests:

• Performance effects
• Middle managers, personnel turnover, and sales
• Product market competition and effectiveness of performance
• Risk aversion, multiplicative noise, and effort under linear incentives
• Skill diversity and firm performance etc.

 

Any questions?

 

 

Time and Place

When: September 20^th 2018, 4:00 pm till 5:30 pm

Where: GSOM SPbU, city campus, Volkhovskiy per., 3, room 408