The role of risk sharing and risk taking under gainsharing

Luis Gomez-Mejia, Theresa M. Welbourne, Robert M. Wiseman

Research output: Contribution to journalArticle

82 Scopus citations

Abstract

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.

Original languageEnglish (US)
Pages (from-to)492-507
Number of pages16
JournalAcademy of Management Review
Volume25
Issue number3
DOIs
StatePublished - Jul 2000

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation

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