Title: The impact of compensation on the performance of competence-exploiting and competence-creating FDI

Authors: Dimitris Manolopoulos

Addresses: Department of Business Administration, Athens University of Economics and Business, 76, Patision Ave., PC. GR-10434 Athens, Greece

Abstract: In the face of the current turbulent economic environment, multinational enterprises may choose to invest in R&D for sustained competitiveness. This study seeks to provide insights on the impact of MNEs' compensation strategies on the performance of geographically-dispersed R&D. Our findings support the existence of a multi-faceted context of compensation dimensions and variables positively associated with R&D output; factoring on the differentiated mandates of decentralised units. Further, we demonstrate that the provision of financial rewards and the effective organisational design stand out as the most influential drivers of advanced R&D performance; regardless the type of research implemented in these units.

Keywords: compensation strategies; competence creation; competence exploitation; FDI; foreign direct investment; decentralised R&D performance; research and development; Greece; multinational enterprises; MNEs; financial rewards; organisational design.

DOI: 10.1504/GBER.2016.075509

Global Business and Economics Review, 2016 Vol.18 No.2, pp.199 - 215

Received: 15 May 2013
Accepted: 24 Mar 2014
Published online: 28 Mar 2016 *

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