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http://hdl.handle.net/10419/41473
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| Title: | | Dynamic incentives in organizations: Success and inertia  |
| Authors: | | Ruckes, Martin Rønde, Thomas |
| Issue Date: | | 2010 |
| Series/Report no.: | | Working paper series in economics 7 |
| Abstract: | | We present a dynamic model in which an employee of a firm searches for business projects in a changing environment. It is costly to induce the employee who found a successful project in the past period to search for a new project. Past success can therefore result in profitreducing corporate inertia. Still, when the firm chooses to counteract the reluctance to search by increasing the power of the incentives, it stimulates initial search efforts and results in higher profits. Corporate restructuring and increasing the employee's authority over time are means to alleviate inertia but may undermine initial search incentives. |
| Subjects: | | incentives in organizations inertia innovation restructuring |
| JEL: | | L2 M12 M54 O31 O32 |
| Persistent Identifier of the first edition: | | urn:nbn:de:swb:90-206152 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Working Paper Series in Economics, Karlsruher Institut für Technologie (KIT)
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