Corporate Strategy, Pay Gap and Employee Turnover Rate: Based on Mediation Model

Xiangyi Zhu

doi:doi:10.11648/j.sjams.20210903.12

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Corporate Strategy, Pay Gap and Employee Turnover Rate: Based on Mediation Model

Xiangyi Zhu

Published in Science Journal of Applied Mathematics and Statistics (Volume 9, Issue 3)

Received: 8 July 2021 Accepted: 19 July 2021 Published: 24 July 2021

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Abstract

The characteristics of prospector are to constantly find new market opportunities, carry out technological innovation, and obtain growth opportunities by moving to high value-added fields. Defender often choose a relatively stable market area and take effective actions, such as setting competitive prices or providing high-quality products and services, to actively prevent subsequent competitors from entering this industry. Although different strategic types of enterprises have different business preference, they cannot do without the active cooperation of employees in the process of strategy implementation, because they are the closest to the production and customers. If the incentive mechanism conflicts with employees' interests, employees may respond by leaving. Based on the sample of China's A-share listed companies from 2007 to 2019, this paper uses the fixed effect model to examine the impact of strategy on employee incentive mechanism and turnover rate. The empirical results show that, compared with defender, the pay gap of prospector is higher, and the above phenomenon is more significant in enterprises with lower labor intensity. In addition, prospector will also push up the turnover rate of employees, in which the pay gap plays a mediating role. This conclusion not only enriches the research of strategic theory and compensation contract, but also has some enlightenment for the relevant government departments to develop vocational training to improve employees' skills.

Published in	Science Journal of Applied Mathematics and Statistics (Volume 9, Issue 3)
DOI	10.11648/j.sjams.20210903.12
Page(s)	78-84
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Strategy, Pay Gap, Employee Turnover Rate

References

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Xiangyi Zhu. (2021). Corporate Strategy, Pay Gap and Employee Turnover Rate: Based on Mediation Model. Science Journal of Applied Mathematics and Statistics, 9(3), 78-84. https://doi.org/10.11648/j.sjams.20210903.12

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ACS Style

Xiangyi Zhu. Corporate Strategy, Pay Gap and Employee Turnover Rate: Based on Mediation Model. Sci. J. Appl. Math. Stat. 2021, 9(3), 78-84. doi: 10.11648/j.sjams.20210903.12

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AMA Style

Xiangyi Zhu. Corporate Strategy, Pay Gap and Employee Turnover Rate: Based on Mediation Model. Sci J Appl Math Stat. 2021;9(3):78-84. doi: 10.11648/j.sjams.20210903.12

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@article{10.11648/j.sjams.20210903.12,
  author = {Xiangyi Zhu},
  title = {Corporate Strategy, Pay Gap and Employee Turnover Rate: Based on Mediation Model},
  journal = {Science Journal of Applied Mathematics and Statistics},
  volume = {9},
  number = {3},
  pages = {78-84},
  doi = {10.11648/j.sjams.20210903.12},
  url = {https://doi.org/10.11648/j.sjams.20210903.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjams.20210903.12},
  abstract = {The characteristics of prospector are to constantly find new market opportunities, carry out technological innovation, and obtain growth opportunities by moving to high value-added fields. Defender often choose a relatively stable market area and take effective actions, such as setting competitive prices or providing high-quality products and services, to actively prevent subsequent competitors from entering this industry. Although different strategic types of enterprises have different business preference, they cannot do without the active cooperation of employees in the process of strategy implementation, because they are the closest to the production and customers. If the incentive mechanism conflicts with employees' interests, employees may respond by leaving. Based on the sample of China's A-share listed companies from 2007 to 2019, this paper uses the fixed effect model to examine the impact of strategy on employee incentive mechanism and turnover rate. The empirical results show that, compared with defender, the pay gap of prospector is higher, and the above phenomenon is more significant in enterprises with lower labor intensity. In addition, prospector will also push up the turnover rate of employees, in which the pay gap plays a mediating role. This conclusion not only enriches the research of strategic theory and compensation contract, but also has some enlightenment for the relevant government departments to develop vocational training to improve employees' skills.},
 year = {2021}
}

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TY  - JOUR
T1  - Corporate Strategy, Pay Gap and Employee Turnover Rate: Based on Mediation Model
AU  - Xiangyi Zhu
Y1  - 2021/07/24
PY  - 2021
N1  - https://doi.org/10.11648/j.sjams.20210903.12
DO  - 10.11648/j.sjams.20210903.12
T2  - Science Journal of Applied Mathematics and Statistics
JF  - Science Journal of Applied Mathematics and Statistics
JO  - Science Journal of Applied Mathematics and Statistics
SP  - 78
EP  - 84
PB  - Science Publishing Group
SN  - 2376-9513
UR  - https://doi.org/10.11648/j.sjams.20210903.12
AB  - The characteristics of prospector are to constantly find new market opportunities, carry out technological innovation, and obtain growth opportunities by moving to high value-added fields. Defender often choose a relatively stable market area and take effective actions, such as setting competitive prices or providing high-quality products and services, to actively prevent subsequent competitors from entering this industry. Although different strategic types of enterprises have different business preference, they cannot do without the active cooperation of employees in the process of strategy implementation, because they are the closest to the production and customers. If the incentive mechanism conflicts with employees' interests, employees may respond by leaving. Based on the sample of China's A-share listed companies from 2007 to 2019, this paper uses the fixed effect model to examine the impact of strategy on employee incentive mechanism and turnover rate. The empirical results show that, compared with defender, the pay gap of prospector is higher, and the above phenomenon is more significant in enterprises with lower labor intensity. In addition, prospector will also push up the turnover rate of employees, in which the pay gap plays a mediating role. This conclusion not only enriches the research of strategic theory and compensation contract, but also has some enlightenment for the relevant government departments to develop vocational training to improve employees' skills.
VL  - 9
IS  - 3
ER  -

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Author Information

Xiangyi Zhu

Business School, Shandong University of Technology, Zibo, China

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Plain Text BibTeX RIS

APA Style

Xiangyi Zhu. (2021). Corporate Strategy, Pay Gap and Employee Turnover Rate: Based on Mediation Model. Science Journal of Applied Mathematics and Statistics, 9(3), 78-84. https://doi.org/10.11648/j.sjams.20210903.12

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ACS Style

Xiangyi Zhu. Corporate Strategy, Pay Gap and Employee Turnover Rate: Based on Mediation Model. Sci. J. Appl. Math. Stat. 2021, 9(3), 78-84. doi: 10.11648/j.sjams.20210903.12

Copy | Download

AMA Style

Xiangyi Zhu. Corporate Strategy, Pay Gap and Employee Turnover Rate: Based on Mediation Model. Sci J Appl Math Stat. 2021;9(3):78-84. doi: 10.11648/j.sjams.20210903.12

Copy | Download

@article{10.11648/j.sjams.20210903.12,
  author = {Xiangyi Zhu},
  title = {Corporate Strategy, Pay Gap and Employee Turnover Rate: Based on Mediation Model},
  journal = {Science Journal of Applied Mathematics and Statistics},
  volume = {9},
  number = {3},
  pages = {78-84},
  doi = {10.11648/j.sjams.20210903.12},
  url = {https://doi.org/10.11648/j.sjams.20210903.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjams.20210903.12},
  abstract = {The characteristics of prospector are to constantly find new market opportunities, carry out technological innovation, and obtain growth opportunities by moving to high value-added fields. Defender often choose a relatively stable market area and take effective actions, such as setting competitive prices or providing high-quality products and services, to actively prevent subsequent competitors from entering this industry. Although different strategic types of enterprises have different business preference, they cannot do without the active cooperation of employees in the process of strategy implementation, because they are the closest to the production and customers. If the incentive mechanism conflicts with employees' interests, employees may respond by leaving. Based on the sample of China's A-share listed companies from 2007 to 2019, this paper uses the fixed effect model to examine the impact of strategy on employee incentive mechanism and turnover rate. The empirical results show that, compared with defender, the pay gap of prospector is higher, and the above phenomenon is more significant in enterprises with lower labor intensity. In addition, prospector will also push up the turnover rate of employees, in which the pay gap plays a mediating role. This conclusion not only enriches the research of strategic theory and compensation contract, but also has some enlightenment for the relevant government departments to develop vocational training to improve employees' skills.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Corporate Strategy, Pay Gap and Employee Turnover Rate: Based on Mediation Model
AU  - Xiangyi Zhu
Y1  - 2021/07/24
PY  - 2021
N1  - https://doi.org/10.11648/j.sjams.20210903.12
DO  - 10.11648/j.sjams.20210903.12
T2  - Science Journal of Applied Mathematics and Statistics
JF  - Science Journal of Applied Mathematics and Statistics
JO  - Science Journal of Applied Mathematics and Statistics
SP  - 78
EP  - 84
PB  - Science Publishing Group
SN  - 2376-9513
UR  - https://doi.org/10.11648/j.sjams.20210903.12
AB  - The characteristics of prospector are to constantly find new market opportunities, carry out technological innovation, and obtain growth opportunities by moving to high value-added fields. Defender often choose a relatively stable market area and take effective actions, such as setting competitive prices or providing high-quality products and services, to actively prevent subsequent competitors from entering this industry. Although different strategic types of enterprises have different business preference, they cannot do without the active cooperation of employees in the process of strategy implementation, because they are the closest to the production and customers. If the incentive mechanism conflicts with employees' interests, employees may respond by leaving. Based on the sample of China's A-share listed companies from 2007 to 2019, this paper uses the fixed effect model to examine the impact of strategy on employee incentive mechanism and turnover rate. The empirical results show that, compared with defender, the pay gap of prospector is higher, and the above phenomenon is more significant in enterprises with lower labor intensity. In addition, prospector will also push up the turnover rate of employees, in which the pay gap plays a mediating role. This conclusion not only enriches the research of strategic theory and compensation contract, but also has some enlightenment for the relevant government departments to develop vocational training to improve employees' skills.
VL  - 9
IS  - 3
ER  -

Copy | Download