Corporate diversification and innovative efficiency: an empirical study

Article Abstract:

A study examines if the number of new products introduced for every dollar spent on R&D is lower in highly diversified companies. The research is an attempt to analyze the criticism that diversified companies are inefficient innovators and are merely concerned with maximizing short-term profits. Statistical results do not show any observable effect of diversification on innovative efficiency. This implies that diversified firms are designed to reduce obstacles to innovation such as incentive and communication difficulties.

Conglomerate corporations, Organizational research, Diversification in industry, Industrial diversification

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Communication and delegation in collusive agencies

Article Abstract:

Business enterprises will find collusion beneficial to their operations if their employees improve the firm's productivity or contribute to cost reduction via shared efforts, information or risks. Collusion has a negative effect on businesses if it reduces efforts or suppresses information. Contracts that use the cooperative behavior of agents prescribe a less relative evaluation of performance compared to contracts that ensure noncooperation among employees.

Price fixing, Profit centers

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Incentive compensation in a corporate hierarchy

Article Abstract:

A business enterprise's personnel data is used to make a theoretical and empirical analysis of middle management incentives. Within-job incentives are found to have a more determining effect compared to results derived from past research. Results prove that promotions contribute to substantial lifetime earnings increases if managers maintain their performance. Based on the results, within-job and promotion-based incentives tradeoffs are not firmly supported.

Wages, Wages and salaries, Incentives (Business), Employee promotions

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