The Impact Of Competitive Strategy On The Internal Compensation Gap

The phenomenon of uneven income distribution and extreme differentiation at all levels of enterprises is becoming more and more serious.For example,Ma Mingzhe,chairman of Ping An,Yang Yuanqing,CEO of Lenovo Group,top three executives of LETV,Wan long,chairman of Shuanghui group,etc.The internal compensation gap of enterprises has been paid close attention by all walks of life,therefore it is urgent to explore the formation mechanism of the internal compensation gap.As a company's overall plan for dealing with internal and external environments,competition strategy determines the type,size,and number structure of internal personnel,which in turn affects the payment target and scale of compensation.It is self-evidently significant to the company's sustainable development.Enterprise practice proves that the matching relationship and degree between human resource compensation incentives and competitive strategy will have a profound impact on the implementation effect of competitive strategy and the acquisition of sustainable competitive advantages.Competitive strategy and compensation system are complementary and interdependent.Therefore,it is necessary to explore the rationality behind the internal salary gap from the perspective of competitive strategy.In the context of the comprehensive reform of the market economy system in China,how the marketization process will affect the relationship between competitive strategy and the internal salary gap.In order to explore the mechanism,this paper attempts to use the listing data to empirically explore the effect of competitive strategy on the internal pay gap,and the role of marketization in regulating the relationship between competitive strategy and internal compensation gap.On the basis of collating and summarizing the latest research progress on competitive strategy,internal compensation gap and marketization process,and based on the theoretical perspective of strategic human resource management theory,this paper puts forward thehypothesis of the relationship between competitive strategy and internal compensation gap and the hypothesis of regulatory effect of marketization process on them.This paper uses2008-2017 A-share listed companies in China's main board manufacturing industry as the research object,and takes the annual reports of listed companies disclosed by CSMAR,RESSET,and CNINFO as the main data source.390 listed companies are finally obtained through data collection,manual entry,screening and sorting,with a total of 3900 balanced panel observation data.In addition,normal test,descriptive statistics,correlation analysis and multicollinearity analysis are used to further ensure the reliability of the sample data.Using spss23.0 and stata14.0 as the data analysis tools,a series of empirical analysis are carried out,including confirmatory factor analysis,ordinary least square multiple regression,fixed effect regression,heteroscedasticity test,Hausman test,and endogenous treatment method of GMM.Finally,the research conclusions of this paper are drawn:(1)Differentiation strategy can positively affect the internal pay gap,while low-cost strategy can negatively affect the internal pay gap.(2)No matter the enterprises implement differentiation strategy or low-cost strategy,the effect of competition strategy on the internal salary gap of state-owned enterprises is always lower than that of non-state-owned enterprises.(3)With the improvement of the market-oriented process,the differentiation strategy plays a stronger role in promoting the internal pay gap,and the low-cost strategy has a stronger negative impact on the internal pay gap.(4)Whether it's differentiation strategy or low-cost strategy,matching the salary gap within a reasonable range can effectively improve enterprise performance.This paper opens a new perspective to explore the formation mechanism of internal compensation gap from the perspective of competitive strategy,empirically tests the effect and transmission mechanism of competitive strategy on internal compensation gap,and distinguishes the effect of competitive strategy and internal compensation gap under different property rights.In addition,it breaks through the perspective of absolute effect,and confirms the nature of the variability of the relationship between competitive strategy and internal compensation gap.Finally,the paper tests the economic consequences caused by the competition strategy and the internal salary gap,and finds that the reasonable match between the competition strategy and the internal salary gap can effectively promote the business performance.Through the two levels of enterprise and society,this paper puts forward countermeasures and suggestions with practical reference value to the practice of enterprise governance from the aspects of shareholders and board of directors,managers,government and the public.