Abstract
Under the analysis of the psychological level of entrepreneurs, the study focuses on discussing the relationship between the salary gap and enterprise innovation efficiency. It provides a reference basis for promoting employee innovation activities and improving the market competitiveness of enterprises. First, the role of entrepreneur psychology in decision-making was explained theoretically. Based on this, the relationship between the salary gap of employees and enterprise innovation was analyzed from a theoretical perspective. In the empirical analysis, this paper selected the data of China’s A-share manufacturing listed enterprises from 2012 to 2016 as the research sample. The explanatory variables include the salary of senior management, the salary of the ordinary employee and salary gap. The explained variable is enterprise innovation efficiency. By constructing an econometric model, this study used a multiple regression model to empirically analyze the correlation between the salary gap and innovation efficiency. The regression coefficients between monetary salary and equity salary of senior managers and enterprise innovation performance are 5.545 and 1.003, respectively. The regression coefficient between the salary of the ordinary employee and enterprise innovation efficiency is 8.357. The regression coefficient between the internal salary gap of the senior management team and the enterprise innovation efficiency is 3.552, both of which show a significant positive correlation at the 1% level. The regression coefficient between the salary gap between senior managers and ordinary employees and the enterprise innovation performance is −3.032, which is significantly negatively correlated at the 5% level. The internal salary gap of the senior management team has a significant positive effect on enterprise innovation efficiency. The salary gap between senior managers and ordinary employees has a negative effect on enterprise innovation efficiency. Enterprises should optimize the salary structure from two levels of senior managers and ordinary employees, to stimulate the work enthusiasm of employees at all levels, and promote enterprise innovation.
Highlights
Since the reform and opening-up, China’s economy has developed rapidly and China has become the world’s largest manufacturing country
The maximum and minimum are 14.39 and 11.76, respectively, indicating that there is a large difference in the internal salary gap of the senior management team of the enterprise, which is in an unbalanced state
The mean salary gap between senior managers and ordinary employees is 1.85, and the extreme values are quite different, which may be related to the differences in the internal resource allocation management of different enterprises
Summary
Since the reform and opening-up, China’s economy has developed rapidly and China has become the world’s largest manufacturing country. As the foundation and lifeblood of China’s national economy, the manufacturing industry is the key supporting force to promote scientific and technological progress and the main direction of technological innovation (Hou, 2018). China has attached great importance to the improvement of manufacturing innovation capabilities at the national level. Both the outline of science and technology development as well as the reform of the science and technology system have clearly pointed out that innovation is the primary driving force for development. The innovation is always put at the core position of the overall development, and more innovation platforms are built to attract more innovative talents, apply more innovation results, thereby improving the economic innovation and competitiveness (Jiang et al, 2019)
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