Congruence between technology and compensation systems: Implications for strategy implementation

Jason DeFrance Shaw, Nina Gupta, John E. Delery

Research output: Journal article publicationJournal articleAcademic researchpeer-review

41 Citations (Scopus)

Abstract

This paper examines the interactive relationship between the use of integrated manufacturing and compensation practices in predicting several aspects of plant performance in the concrete pipe industry. We predicted that compensation practices reinforcing collective effort, teamwork, and flexibility (team incentives and skill-based pay) enhance the effectiveness of integrated manufacturing systems (total quality management and advanced manufacturing technology), while practices inhibiting cooperation and teamwork among employees (individual incentives and seniority-based pay) impede it. Results provide moderate support for the congruence model across several measures of plant effectiveness (labor hours per ton, lost-time accidents, perceptual performance, and customer satisfaction). Implications of the research are addressed.
Original languageEnglish
Pages (from-to)379-386
Number of pages8
JournalStrategic Management Journal
Volume22
Issue number4
DOIs
Publication statusPublished - 1 Apr 2001
Externally publishedYes

Keywords

  • Compensation
  • Strategy implementation
  • Technology

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management

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