1/7/2024 0 Comments Nielson sample manager payFinally, we provide a springboard for a future research agenda on countercultural practices, centered around understanding the circumstances under which businesses and local stakeholders might benefit from the use of countercultural practices based on such factors as strategic intent, local preferences, institutional drivers, and social responsibility. Drawing on the literature reviewed, we offer four types of theoretical (ontological, epistemological, causal, and functional) explanations as to why and when countercultural business practices might be preferred. We examine and challenge this persistent assumption by reviewing the literature showing evidence for both benefits and acceptance of countercultural practices (i.e., practices that are seemingly incongruent with local cultural norms or values), and disadvantages and rejection of local practices. Business practices that are congruent with local cultural norms have been advocated as effective and desirable, while practices that are incongruent have been deemed problematic. There has long been a dominant logic in the international business literature that multinational corporations should adapt business practices to “fit” host cultures. Finally, firm market valuation was positively stimulated by the increasing pay gap. Additionally, female CEOs had a significant and positive lagged effect on productivity. As a result, increasing inequality aversion is an important issue affecting performance among smaller, lower skilled labor dependent firms. On the other hand, companies with lower average salaries and lower capital intensity were characterized by the negative effects of wage dispersion on productivity. ![]() Thus, big companies with a highly skilled workforce are able to achieve tangible benefits through higher salary differentiation. A contrast in the productivity effects of the CEO–worker pay gap for firms with high average salaries and more employees was noticeable, whereas positive productivity gains were present even with a high salary gap. Using extensive data of 751 constituents of the Standard and Poor’s (S&P) 1500 index between the years 1992–2016, we found a cubic relationship between salary differential and corporate productivity, with a rising gap adversely affecting productivity principally when it is both too low, as well as too high intermediate pay inequality levels are less influential. This study examines the effect of the CEO–employee pay gap on productivity and performance.
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