Despite considerable practitioner interest in gainsharing compensation programs, understanding how gainsharing works and, thus, how to improve it in practice is hampered by a lack of a theoretical foundation upon which to build empirically testable models. We use a risk-sharing framework to develop a model of gainsharing that we hope will provide this missing theoretical foundation. In our model we develop propositions that highlight the differences between group-wide and individual incentive arrangements and that establish boundary conditions for a theory of gainsharing.
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- Strategy and Management
- Management of Technology and Innovation