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Large pay gaps do not necessarily improve firm performance.
A body of literature has also examined how entrepreneurial orientation in management can improve firm performance.
Studies have shown that interfirm networks are an effective organizational form to improve firm performance, speed of innovation, and organizational learning (Ahuja 2000; Gulati et al. 2000).
While awareness of market conditions and the willingness to take on additional risk are important success factors, firms must initiate and implement appropriate changes in routines to improve firm performance.
Previous research has shown that the institutional environment influences performances of firms and well-developed market conditions improve firm performance (Xin & Pearce 1996; Peng 2000; Nee 1992; Li et al. 2008).
For non-high-tech firms with low levels of R&D intensity, tournament theory works well, and firms are encouraged to increase executive pay gaps, not just executive compensation, in order to improve firm performance.
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Evidence shows that the incubation process improves firm performance.
They therefore, concluded that incubation is doubtful as a policy of improving firm performance in the long run.
As a result, diversification has become an important option for survival (Dawar & Frost, 1999), for improving firm performance, and for expanding a firm's markets (Campa & Guillen, 1999).
Unfortunately, because buybacks divert money away from investments in productivity without improving firm performance, they ultimately lead to less profit, fewer jobs, lower wages and a smaller overall economy.
An improved understanding of firms' HSE behaviour allows policy-makers to design policies that can foster the emergence of strong HSE routines and substantially improve firms' HSE performance.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com