Research On The Impact Of Employee Compensation And Compensation GAP On Enterprise Innovation Performance

Innovation plays an important role in enhancing the core competitiveness of enterprises,especially for China,a large manufacturing country.In recent years,a series of national strategies,such as innovation-driven development strategy,"mass entrepreneurship,mass innovation" and "manufacturing 2025",have highlighted the pace and determination of our country to become a powerful manufacturing country.However,in the process of transforming to an innovative country,there are still serious backward salary management in manufacturing enterprises.How to design a reasonable compensation contract mechanism to promote the innovation competitiveness of enterprises has become a key issue.Faced with the complex economic environment in China,although the academic circles have made many useful explorations on executive compensation and innovation,innovation is the process of participation of all employees.At present,researches on the improvement and innovation of the compensation system for senior executives and ordinary employees are scattered,and insufficient attention has been paid to the dynamic scenarios in different life cycle stages.In view of this,this paper takes China's GEM manufacturing listed companies from 2012 to 2016 as the research sample.Based on principal-agent theory,Championship theory,behavioral theory and life cycle theory,this paper differentiates senior managers and ordinary employees,and empirically examines the impact of employee pay and pay gap on enterprise innovation performance from the perspective of innovation output.Based on the dynamic perspective of enterprise life cycle,this paper deeply explores the differential adjustment effect of employee compensation and salary gap on innovation performance.The main conclusions are as follows:(1)Executives' monetary remuneration and executive equity remuneration are positively correlated with innovation performance;executive internal remuneration gap is positively correlated with financial innovation performance;executive internal remuneration gap has no significant impact on technological innovation performance;executive-employee remuneration gap is negatively correlated with technological innovation performance;executive-employee remuneration gap has no significant impact on financial innovation performance.(2)Under the grouping regression of innovation input,the higher the innovation input,the greater the effect of executive monetary compensation on financial innovation performance.The higher the innovation investment,the greater the promotion effect of executive compensation on innovation performance.The lower the innovation investment,the greater the promotion effect of internal compensation on financial innovation performance;the lower the innovation investment,the greater the negative impact of executive-employee compensation on technological innovation performance.(3)Under the grouping regression of enterprise life cycle,the monetary remuneration and equity remuneration of executives have inverted U-shaped effects on the performance of technological innovation;the pay gap between executives and employees has inverted U-shaped effects on the performance of financial innovation;and the promotion effects of monetary remuneration,equity remuneration of executives,internal remuneration gap of executives and financial innovation performance show a downward trend.On the theoretical level,this study enriches the research on the influencing factors of employee's salary and salary gap on innovation performance,and broadens the dynamic research perspective of salary and innovation performance.This study divides manufacturing enterprises into different life cycle stages,combines the characteristics of their own life cycle,and enhances the incentive effectiveness of employee's salary and salary gap on innovation performance of enterprises,so as to provide reference and Enlightenment for the optimization of internal salary system of enterprises.Moreover,the paper can also provide some reference for formulation of relevant government policies,and promote the innovation strategy,transformation and upgrading of enterprises.