Research Articles

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https://hdl.handle.net/20.500.14417/1726

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Browsing Research Articles by Funding "Academy of Finland"

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    Contingencies in the effects of job-based pay dispersion on employee attitudes
    (John Wiley and Sons Inc, 2023) Kepes, Sven; Jokela, Markus; Tenhiälä, Aino; Academy of Finland; Agencia Estatal de Investigación; https://ror.org/02jjdwm75
    When does pay dispersion elicit positive or negative employee attitudes? A review of the pay dispersion literature indicates a controversy around this vital question and suggests that numerous contingency factors moderate the effects of pay dispersion. In an empirical study of four Finnish companies consisting of 141 work units,we examine contingencies in attitudinal reactions to job-based pay dispersion among blue-collar workers. Based on archival pay data matched with employee survey responses (n = 536),we find that perceptions of pay basis legitimacy,task interdependence,and an individual's pay standing within the work unit explain the strength and direction of the relation between job-based pay dispersion and employee attitudes (i.e.,work engagement and organizational commitment). Our findings have implications for the design of pay systems and contribute to a better appreciation of the complexities underlying employee attitudinal responses to pay dispersion. © 2023 The Authors. Human Resource Management published by Wiley Periodicals LLC.
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    Right on the Money? The Contingent Effects of Strategic Orientation and Pay System Design on Firm Performance
    (Wiley, 2018-09-14) Tenhiälä, Aino; Laamanen, Tomi; Kulttuurin ja Yhteiskunnan Tutkimuksen Toimikunta; Academy of Finland; https://ror.org/02jjdwm75
    This paper extends prior research on the performance implications of the fit between a firm’s strategic orientation and its pay system design. Whereas prior research has shown that matching the pay system design to the strategic orientation of the firm generally contributes to higher performance, most studies have examined the pay systems of the upper echelons and employees separately. Based on an analysis that accounts for both horizontal and vertical pay dispersion, we find that whereas growth-oriented firms (prospectors) tend to benefit from high horizontal pay dispersion, efficiency-oriented firms (defenders) perform better with high vertical pay dispersion and low relative base pay. Overall, our findings contribute to an improved understanding of how to optimize the pay systems of firms with different strategic orientations.
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    Why locate manufacturing in a high-cost country? A case study of 35 production location decisions
    (Elsevier B.V., 2017) Turkulainen, Virpi; Seppälä, Timo; Rouvinen, Petri; Ali Yrkkö, Jyrki; Ketokivi, Mikko; Academy of Finland; Kungliga Tekniska Högskolan; https://ror.org/02jjdwm75
    In this paper,we examine in detail 35 final assembly location decisions to gain understanding of the manufacturing location decision from strategy and economic policy perspectives. We are particularly interested in the decision to locate final assembly specifically in a high-cost (high GDP per capita) environment. In contrast with the earlier literature,we focus not just on manufacturing activities themselves,but also the key linkages between production,market,supply chain,and product development. These linkages are examined using three key concepts from theories of organization design: formalization,specificity,and coupling. Using these concepts,an analysis of the micro-structure of each case reveals important commonalities that inform our understanding of location decisions. We conclude by discussing the policy implications of our findings. © 2017 Elsevier B.V.