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Three-way complementarities / Sinan Aral in Management science, Vol. 58 N° 5 (Mai 2012) 

Public ISBD [article]  in Management science > Vol. 58 N° 5 (Mai 2012) . - pp. 913-931 Titre : Three-way complementarities : Performance pay, human resource analytics, and information technology Type de document : texte imprimé Auteurs : Sinan Aral, Auteur ; Erik Brynjolfsson, Auteur ; Lynn Wu, Auteur Année de publication : 2012 Article en page(s) : pp. 913-931 Note générale : Management Langues : Anglais (eng) Mots-clés : Incentive  systems  Information  technology  Performance  pay  Human  resource  analytics  Complementarity  Enterprise  systems  ERP  Productivity  Production  function  Principal–agent  model Résumé : We test for three-way complementarities among information technology (IT), performance pay, and human resource (HR) analytics practices. We develop a principal–agent model examining how these practices work together as an incentive system that produces a larger productivity premium when the practices are implemented in concert rather than separately. We assess our model by combining fine-grained data on human capital management (HCM) software adoption over 11 years with detailed survey data on incentive systems and HR analytics practices for 189 firms. We find that the adoption of HCM software is greatest in firms that have also adopted performance pay and HR analytics practices. Furthermore, HCM adoption is associated with a large productivity premium when it is implemented as a system of organizational incentives, but has less benefit when adopted in isolation. The system of three-way complements produces disproportionately greater benefits than pairwise interactions, highlighting the importance of including all three complements. Productivity increases significantly when the HCM systems “go live” but not when they are purchased, which can be years earlier. This helps rule out reverse causality as an explanation for our findings. DEWEY : 658 ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/58/5/913.abstract [article] Three-way complementarities : Performance pay, human resource analytics, and information technology [texte imprimé] / Sinan Aral, Auteur ; Erik Brynjolfsson, Auteur ; Lynn Wu, Auteur . - 2012 . - pp. 913-931. Management Langues : Anglais (eng) in Management science > Vol. 58 N° 5 (Mai 2012) . - pp. 913-931 Mots-clés : Incentive  systems  Information  technology  Performance  pay  Human  resource  analytics  Complementarity  Enterprise  systems  ERP  Productivity  Production  function  Principal–agent  model Résumé : We test for three-way complementarities among information technology (IT), performance pay, and human resource (HR) analytics practices. We develop a principal–agent model examining how these practices work together as an incentive system that produces a larger productivity premium when the practices are implemented in concert rather than separately. We assess our model by combining fine-grained data on human capital management (HCM) software adoption over 11 years with detailed survey data on incentive systems and HR analytics practices for 189 firms. We find that the adoption of HCM software is greatest in firms that have also adopted performance pay and HR analytics practices. Furthermore, HCM adoption is associated with a large productivity premium when it is implemented as a system of organizational incentives, but has less benefit when adopted in isolation. The system of three-way complements produces disproportionately greater benefits than pairwise interactions, highlighting the importance of including all three complements. Productivity increases significantly when the HCM systems “go live” but not when they are purchased, which can be years earlier. This helps rule out reverse causality as an explanation for our findings. DEWEY : 658 ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/58/5/913.abstract