This study tests six hypotheses on the extent to which a match between compensation and diversification strategies affects firm performance. Using both archival and survey data, results generally support the notion that a firm's compensation strategies make a greater contribution to firm performance if these are attuned to extent and process of corporate diversification. The paper concludes with a set of recommendations for future research on compensation‐diversification strategy relations and their interactive effect on firm performance.
- compensation strategy
- firm performance
ASJC Scopus subject areas
- Business and International Management
- Strategy and Management